|
PureBytes Links
Trading Reference Links
|
John, I have a lot of experience with options.
>I'm considering trading options, but only using a hotline with a
>posted, trade by trade win record of like 76% to 81% over last 2.5
>years.
That's meaningless. If that's the win/loss record, what are the sizes
of wins and losses? I can sell 2-standard deviation naked options on
futures all year and win 80% of them, but the few losers can potentially
wipe out the winners.
If they're just recommending to buy calls or puts on stocks, then it's
no different from making directional predictions, and then to reach that
win% they'd have to be just as accurate in their stock picking.
If this 76% to 81% record is the return on equity, then it's likely bogus.
>We always hear trading options can be more risky than other types
>of trading, but with win percentages like those how can you loose ?
You can lose by losing more money on the losers than the winners. It
depends on the kind of strategy they're recommending.
>Are fees and commissions for options relatively excessive compared to trading
>e-mini futures ?
Yes, although IB's fees are the most reasonable.
>I'm considering Steve Sarnoff's hotline as he gives a trade once
>per week and you hold an average of 2 to 6 weeks till target
>objective reached.
>
>Certainly sounds like it beats staring at a computer screen all day
>--- daytrading.
That's what I like about my option strategies. They are slow paced and
don't require much attention.
Bear in mind that many brokers won't accept stop orders on options.
One normally uses limit orders.
-Alex
|