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...>some aliens who would be ignorant about the fact that Germany borders on
the North Sea which is part of the Atlantic Ocean.<
True, but there is warm ridable surf there about as often as there
are aliens lunching at the White House (the English and the Irish get your
waves).
Seriously, and back on topic, my point is there is no free lunch. You
*might* lose smaller amounts more often using options, or larger amounts
less often not using them. I'm not saying they are bad, just that there
is risk there too, and everyone needs to balance it for themselves.
Moreover, IMHO, it is trading skill that is key. A good public example is
Marty Schwartz's 1987 crash story in Market Wizards: he came into
Black Monday heavily long and unhedged, but managed to make money for the
month just the same. Would it have been better to have been long a bunch
of puts? Of course, but that's a different story.
BW
>From: MikeSuesserott@xxxxxxxxxxx (MikeSuesserott)
>To: "Bill Wynne" <tradewynne@xxxxxxxxxxx>
>CC: <omega-list@xxxxxxxxxx>
>Subject: Options - was:Globex2 in home
>Date: Thu, 5 Jul 2001 17:39:01 +0200
>
>
>LOL! But, Bill, you didn't tell the rest of that heart-rending story. As it
>turns out, aliens in humanoid bodies had been infiltrating the world for
>years. You couldn't recognize them except for some occasional, almost
>unnoticeable blunder in their knowledge of Planet Earth. For instance,
>there were some aliens who would be ignorant about the fact that Germany
>borders on the North Sea which is part of the Atlantic Ocean. By these tiny
>mistakes you could sometimes spot them. :-)
>
>Well, the next day the aliens openly take over the White House and the
>market tanks. A huge downward gap renders the stops the futures traders had
>placed in their accounts all but useless; the pitiful wailing of these poor
>souls is heard all the way to Nevada. At the same time, premiums come
>roaring back and option traders make a killing. With a heavy heart, the
>surfer/option trader gets into his BMW and drives to his favorite resort at
>the North Sea (www.st.peter-ording.de), there to meet Tommy Lee Jones and
>Willie Smith. Can they save the world?
I saw a video once about wind-surfing there: it looked cold.
>
>Michael Suesserott
>
>
>Bill Wynne wrote:
> > Yet another case: at expiration market has not moved. All long options
> > strategies at or near the money lose near 100% of the premiums paid. You
> > roll over your e-mini for the price of commission and replace the
> > stop. You
> > walk across the sandy beach into the blue surf. The warm tropical water
> > feels good, but a tear rolls down your face and you think sadly: "Poor
> > German surfer/traders....they must get in their BMW's and drive to
>France
> > just to get wet...."
> >
> > :)
>
>
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