Why NOT to do OPtion Trading

Schatz

Well-Known Member
#11
May I ask a question: Is this a question about why this happened or is this a question by which you expect members here to find out your way of trading that this happened?
i intentionally hid some part to see if anyone could see the missing part.. the idea is not about my way of trading.. i intend to state that options are extremely powerful tool of trading where you can go wrong and not lose money .. but to go there one has to build knowledge.. dont go by others... i doubt future traders understand and/or appreciate power of options...
 

DanPSup

Hedge Strategy Trader in Options and Futures
#12
i intentionally hid some part to see if anyone could see the missing part.. the idea is not about my way of trading.. i intend to state that options are extremely powerful tool of trading where you can go wrong and not lose money .. but to go there one has to build knowledge.. dont go by others... i doubt future traders understand and/or appreciate power of options...
Thanks for your answer. :up: And yes I agree with you: but to go there one has to build knowledge.. dont go by others Hedges are not just done, it must be understood how and why it is done. Even a deep knowledge about all the Greeks in option trading in this case is a must and this is not really shown in the video. Also here I agree with you.

Short gamma is short options and so vega is a reason to go this road.To hedge the vega risk depends on what kind of short option you have: otm, atm or itm. Delta hedges are a way to lower the risk.
 

Schatz

Well-Known Member
#13
Thanks for your answer. :up: And yes I agree with you: but to go there one has to build knowledge.. dont go by others Hedges are not just done, it must be understood how and why it is done. Even a deep knowledge about all the Greeks in option trading in this case is a must and this is not really shown in the video. Also here I agree with you.

Short gamma is short options and so vega is a reason to go this road.To hedge the vega risk depends on what kind of short option you have: otm, atm or itm. Delta hedges are a way to lower the risk.
yes .. although i was short gamma but i was long vega too... which saved me even after a 5% gap down... infact made 1% return on capital overnight.. is nt it interesting
 

Vmaster369

Well-Known Member
#14
Schatz
you was just lucky aren;t you screaming only if u have kept trade still on how much you would have made
lol.
i haven;t met option trader that made consistent profit..when i was young i made 15 lakhs in 1 day from option with 3 laks capital and all 15 lakhs were gone by next month .
Futures is way but with falling market Only seems Equity is way as it has no expiry
after 14 months White walker will come again tobuy equity :xD
by 2022 everything be forgotten and nifty be back to 12400
 

Schatz

Well-Known Member
#15
Schatz
you was just lucky aren;t you screaming only if u have kept trade still on how much you would have made
lol.
i haven;t met option trader that made consistent profit..when i was young i made 15 lakhs in 1 day from option with 3 laks capital and all 15 lakhs were gone by next month .
Futures is way but with falling market Only seems Equity is way as it has no expiry
after 14 months White walker will come again tobuy equity :xD
by 2022 everything be forgotten and nifty be back to 12400
either u did not understand what i said or i dont understand what u said :)

yes u need to be fortunate in market not lucky.. my point was options can be used in a very controlled way and not in gambling way... in options u can create structures .. futures are delta only play.. by looking at ur reply i assume u did nt have too much dealings with options .. my posts r intended for traders like yourself that understand options... hope it helps!!!

Options are complex and beautiful for the eyes who can appreciate beauty ..