Certain risk you will have to take in trading. Hopping that market exactly will close where you have the best profit with your long call BFL is like want to be sure to make money with a directional trade. As you know: Both is not the way we trade: Either options nor futures. So how to reduce risk and increase profit in option trading? Here you have to be clear about the amount you want to risk for any option trade you do. You can do this by taking a spread, which defines the amount you risk. Or you can define this by the money you spend to buy an option with the idea that this money is the amount you will risk. So this option could go to zero and it not would hurt you. If you want to set a stop loss on an option, lets say 20 for an option you bought for 70, that will be a bit more difficult, as there are many variables which influence the price of an option. In such a case you could place a limit sell order by your broker for this option. An other way is to set a level on the underlying of those option as a stop loss level, on which you will sell your option. So if you are wrong, your loss will be limited. But probably this is not the only problem you face. What about managing an existing option position in the live market? How strong are your skills for such kind of trading? If you have good skills for this, then most of your arguments above, which show some how unsureness about your live trading, will have no more value. As we can leg in any option strategy in many different ways (Was posted in my thread), we can change the outcome of any of those option strategies. So then comments like: This is not good idea or this those not change much and so on suddenly are gone. Now have a look at the following, which was done through leg in and you will see the different between professional option trading and basic, low profit option trading. And yes, this not always will be successful like every thing in trading does not work all the time 100%. People who tell they always have a 100% success rate are people who not trade in the real market. But we can trade like this with low risk entry strategies and then do what is needed to bring the trade over the zero line, which is the different of having a higher risk of any loss (when being under the zero line like your BFL profile shows) or a very low risk to zero loss in this trades.
Now I hope this will give you some more confidence in your style of option trading, which is related to option strategy trading. Many other styles can be done with options, but you choosed this way. It is not the most easiest way and best would be to have a real mentor which would lead you in your live trading day by day for a few weeks. You may try a mentor program from a serious mentor or option trading company.
I also hope it will motivate you to really define your risk profile a bit in an other way. I not will further post here in this thread as many other things are posted in my thread and in many other threads. So take care dear friend and all the best
All what you now will see are trades which are done by legin in different ways. Some times with three legs, some times with one leg and then converted into non directional trades. All strategies are finally over the zero line, which means where ever market moves, there is profit. The biggest risk on all of those trades where the moments the market was entered with the first leg/s. And the risk was always in advance defined by the amount of money who could be lost on this entry. (You not will find any link in the net about such kind of synthetic option trading shown below)
Long call broken wing BFL: http://i61.tinypic.com/2jdjb0p.png
Synthetic long iron BFL: http://i57.tinypic.com/mhx9nd.png
Synthetic long broken wing iron BFL: http://i62.tinypic.com/bdw3o2.png
Now I hope this will give you some more confidence in your style of option trading, which is related to option strategy trading. Many other styles can be done with options, but you choosed this way. It is not the most easiest way and best would be to have a real mentor which would lead you in your live trading day by day for a few weeks. You may try a mentor program from a serious mentor or option trading company.
I also hope it will motivate you to really define your risk profile a bit in an other way. I not will further post here in this thread as many other things are posted in my thread and in many other threads. So take care dear friend and all the best
All what you now will see are trades which are done by legin in different ways. Some times with three legs, some times with one leg and then converted into non directional trades. All strategies are finally over the zero line, which means where ever market moves, there is profit. The biggest risk on all of those trades where the moments the market was entered with the first leg/s. And the risk was always in advance defined by the amount of money who could be lost on this entry. (You not will find any link in the net about such kind of synthetic option trading shown below)
Long call broken wing BFL: http://i61.tinypic.com/2jdjb0p.png
Synthetic long iron BFL: http://i57.tinypic.com/mhx9nd.png
Synthetic long broken wing iron BFL: http://i62.tinypic.com/bdw3o2.png
can you give me the value that you have taken for each legs for pic...
thanks
