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If your system is accurate to a degree then those worthless out of the money
calls become golden. If you are a delta trader then you can sell them all
the way up, maintain the same delta postion, have a reduced exposure to
the market and take profits along the way. Ira.
Joe Frabosilio wrote:
> John,
>
> Wouldn't your system (method) work better if you bought "in the money"?
> For me "out of the money" is 80-90% pure death.
>
> TradeWell,
> Joe Frabosilio
>
> Johnny Storm wrote:
>
> > Linda
> >
> > I know what you are saying...I have a method that I have developed and
> > has had good success. I have traded it on the equities side and have
> > traded it on the futures side using "out of the money options". It has
> > worked out well.
> >
> > The key is when trading options is to trade as if you were trading the
> > out right contract. Put stops in and everything. Don't be greedy, be
> > happy with a 100% return, don't look for the 500-900% returns.
> >
> > I also love to scalp, that is my bread and butter. I found having a
> > good broker watch the moves for you to be a great help.
> >
> > --- Linda Swope <lswope@xxxxxxxxxxx> wrote:
> > > Regarding Norm's and others' suggestion of longer
> > > terms trades:
> > >
> > > I'm coming around to that point! I sure was ready to
> > > give up the stress of
> > > scalping! My new system sees the trades. I believe
> > > this system will suit
> > > my personality. All things point to go, but I've
> > > been afraid to pull the
> > > trigger for one reason. I'm afraid to hold anything
> > > overnight. A stop
> > > won't protect me from a major move overnight against
> > > me.
> > >
> > > Help me face that fear and I'll be ready to go!
> > >
> > > > The bottomline is that the daytrader must
> > > undergo many times the
> > > stress
> > > >than does a longer term trader in quest for a return
> > > on capital that is
> > > attained
> > > >by very few and that probably more likely would be
> > > attained if they
> > > lengthened
> > > >their time horizon. Additionally, if one has a
> > > successful long term trading
> > > >strategy, there is no reason that one couldn't keep
> > > another job or
> > > profession,
> > > >entering orders before the market opens, and
> > > therefore maintain another
> > > income.
> > > >So the cost of daytrading is potentially loss of an
> > > income from another
> > > job,
> > > >business, or profession, paying high fees and
> > > commissions for quotes and
> > > >brokerage, and unknown and unlimited personal and
> > > health costs due to the
> > > very
> > > >high stress.
> > > >
> > > > I was a floor trader in Chicago for 12 years,
> > > so I know about
> > > >daytrading.. It was alot of fun when I was in my
> > > 20s. It was less fun in my
> > > 30s.
> > > >It was then, in anticipation of where I wanted to be
> > > in my 40s, that I
> > > started
> > > >to train myself to trade from off the floor and
> > > started a long journey
> > > toward
> > > >learning how to trade on a longer term basis. I had
> > > studied many traders
> > > and
> > > >money managers and concluded that the really big
> > > money was made from off
> > > the
> > > >trading floor on longer term positions. I don't
> > > think George Soros or
> > > Warren
> > > >Buffet do very much daytrading. Yet, they both
> > > started with relative small
> > > sums
> > > >of capital and have built up their capital far
> > > beyond what most daytraders
> > > would
> > > >ever dream.
> > > >
> > > > I have spent the last dozen years on a path
> > > that has taken me from
> > > holding
> > > >positions for as little as a few seconds to a few
> > > hours to now taking
> > > positions
> > > >that I sometimes hold for weeks or months. I am very
> > > happy in my current
> > > trading
> > > >and life style. I am now away from the trading
> > > floor, the high stress of
> > > short
> > > >term trading, and I live in a paradisic part of the
> > > world. I find it very
> > > ironic
> > > >that the rest of the world seems to be rushing in
> > > the opposite direction.
> > > They
> > > >remind me of the moth wanting to fly toward the
> > > flame, a brilliant but
> > > short
> > > >existence.
> > > >
> > > >Relaxedly,
> > > >
> > > >Norman
> > > >
> > > >
> > > >
> > > >
> > > >>
> > > >>
> > > >> linda@xxxxxxxxxxxxxx
> > > >> Climb the mountains & get their glad tidings:
> > > Peace will flow into you as
> > > >> sunshine into flower; the winds will blow their
> > > freshness into you &
> > > storms
> > > >> their energy, & cares will drop off you like
> > > autumn leaves. John Muir
> > > 1838 -
> > > >> 1914
> > > >>
> > > >> -----Original Message-----
> > > >> From: Dtrader <dan@xxxxxxxxxxxxxxxxx>
> > > >> To: RealTraders Discussion Group
> > > <realtraders@xxxxxxxxxxxxxx>
> > > >> Date: Thursday, April 01, 1999 12:19 PM
> > > >> Subject: was [Bull Market]
> > > >>
> > > >> >
> > > >> >
> > > >> >on the other hand, so do 90% of artists,
> > > musicians and most new
> > > businesses.
> > > >> >
> > > >> >i'm not real sure this statistic has much
> > > relevance.
> > > >> >
> > > >> >dan
> > > >> >
> > > >> >
> > > >> >
> > > >> >-----Original Message-----
> > > >> >From: Norman Phair <ericrogers@xxxxxxxxxxxxx>
> > > >> >To: RealTraders Discussion Group
> > > <realtraders@xxxxxxxxxxxxxx>
> > > >> >Date: Thursday, April 01, 1999 1:59 PM
> > > >> >Subject: Re: Bull Market
> > > >> >
> > > >> >
> > > >> >:I have heard figures as high as 90% of the
> > > people that do day trading
> > > >> >:fail. No work, no reward.
> > > >> >:
> > > >> >:Norman E,
> > > >> >:
> > > >> >:> "Peter M. Beckwith" wrote:
> > > >> >:>
> > > >> >:> Great post, Ira.
> > > >> >:>
> > > >> >:> Not only are there more on-line trading
> > > commercials than beer and
> > > auto
> > > >> >:> commercials, but the content and substance of
> > > these commercials is
> > > >> >:> completely off-line. The firms that sponsor
> > > these commercials hire
> > > >> >:> teams of lawyers to settle suitability of
> > > investment lawsuits and
> > > >> >:> arbitration suits all them time from people
> > > who lost their shirts(not
> > > >> >:> to mention their homes) after daytrading on
> > > the internet for a couple
> > > >> >:> of months. You would think that after all of
> > > the horror stories out
> > > >> >:> there about people who didn't understand what
> > > margin was or that if
> > > >> >:> the stock goes against you x percent you have
> > > to meet the cash
> > > >> >:> requirement, the firms themselves would take a
> > > more responsible
> > > >> >:> stance. Instead, most of us who keep CNBC on
> > > in the background have
> > > >> >:> to watch an Ameritrade commercial about a mom
> > > and housewive who can
> > > >> >:> take the kids to school and throw some money
> > > in a biotech company to
> > > >> >:> the tune of $1700/day or the guy who owns his
> > > own island, etc...
> > > >> >:>
> > > >> >:> I don't know what we are going to see with
> > > this market, but one day(I
> > > >> >:> hope) we can look back and just laugh at how
> > > absurd those commercials
> > > >> >:> really were. I am hoping it is sooner rather
> > > than later and then
> > > >> >:> maybe, just maybe the public will understand
> > > that trading is a
> > > >> >:> profession, not a hobby that you take up in
> > > your spare time...
> > > >> >:>
> > > >> >:> Pete Beckwith
> > > >> >:>
> > > >> >:>
> > > >> >:
> > > >> >
> > > >
> > >
> > === message truncated ===
> >
> > _________________________________________________________
> > Do You Yahoo!?
> > Get your free @yahoo.com address at http://mail.yahoo.com
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