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I am seeking assistance from real world options practitioners -traders,
<BR>locals, brokers etc.
<P>Looking for views on recommended strategies that are applicable to today's
markets and that can be
<BR>practically and profitably employed by an off the floor trader paying
<BR>reasonable brokerage. Just to clarify I am after strategies not specific
trades.
<P>I live outside the USA and the time difference does not allow for the
<BR>regular monitoring of markets during US trading hours.
<BR>
<BR><U>Possible candidates.</U>
<P>Options strategies that result in small consistent profits regardless
of
<BR>market direction.
<P>Strategies that involve writing options without the exposure to unlimited
<BR>risk e.g. vertical credit spreads.
<P>One purpose for this request is that I want to ramp up my options trading
<BR>experience and frequency whilst limiting risk. If after say 6 months
I am
<BR>down a little after using these strategies then that will be okay because
I
<BR>am after more hands on experience with options as part of an overall
plan to
<BR>evolve into a more complete and professional trader.
<P>I have a pretty good understanding of option pricing factors and have
read
<BR>all the usual options trading books including the Options Volatility
<BR>Handbook by Robert Krause of the CME and various magazine articles.
<P>I have been inclined to<B> write naked options</B> under the right circumstances
<BR>but to date I have not because I know that they are not recommended
by many
<BR>who have been around the markets for a reasonably long time due the
limited
<BR>profit / unlimited risk factor.
<P>Naked Futures involves unlimited risk also, however, this is not usually
<BR>stressed with the same emphasis as when naked option writing is being
<BR>discussed. Option writers can exit or take offsetting positions after
trade
<BR>entry also. They can also apply money management rules etc.
<P>What I am saying is that the unlimited risk of option writing is emphasised
<BR>by the industry and yet the I have the impression that it is professionals
<BR>who write the vast majority of options.
<P>I have wanted to ask the following question of experienced non-biased
people
<BR>in the industry for a while.
<P><B>Given that exit strategies exist, do naked option writers blow out
because</B>
<BR><B>they get so used to having winning trades that they get complacent
and fail</B>
<BR><B>to exit losing trades / use stops ?</B>
<P><B>Do naked option writers blow out because they get so used to having
winning</B>
<BR><B>trades that they get complacent and overtrade and therefore take
on too much</B>
<BR><B>risk relative to their account size ?</B>
<P>After all both a straight futures contract and a naked written option
carry
<BR>unlimited risk - do nothing and you can get blown out.
<P> I would really appreciate any advise and assistance any of you
are able to
<BR>offer based on your option trading experience.
<P>Thanks,
<P>Chris</HTML>
</x-html>From ???@??? Wed Jul 07 06:15:27 1999
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Date: Wed, 07 Jul 1999 21:16:41 +0930
To: "gram" <gramario@xxxxxx>, <realtraders@xxxxxxxxxxxx>
From: Bruce T Armstrong <joany@xxxxxxxxxxxxxxx>
Subject: Re: LME
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<font size=3>At 09:46 AM 7/7/99 +0100, gram wrote:<br>
><br>
><br>
><br>
><br>
>>Devisating from Astrological matters a moment, does anyone here
trade the<br>
>>LME?<br>
>>Gram<br>
>><br>
The LME has an unusual market procedure that uses 5 minute periods ended
with the sound of a bell. I have witnessed this and it is facinating. It
also uses a 3 month contract.<br>
If I could get(readily) EOD prices I would trade it. However I am still
waiting for someone to recommend a data supplier that does this. You must
also find a broker that will take your order!<br>
Regards<br>
Bruce A</font><br>
<div>Bruce T Armstrong</div>
<div>29 Gordo Avenue, Wattle Park.</div>
<div>Adelaide</div>
<div>South Australia 5066</div>
Australia.
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</x-html>From ???@??? Wed Jul 07 08:37:01 1999
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Date: Wed, 7 Jul 1999 10:14:18 EDT
Subject: Re: Trading Gen: The Duck - Astology
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Fact #1: Norman makes money trading.
Fact #2 Norman uses astrology to trade.
One might argue what conclusions may be be drawn from these facts.
One conclusion that CANNOT be drawn though, is that astrolgy is flawed as a
way to trade profitably. As well, one CANNOT argue that astology is totally
invalid, and at the same time accept Norman uses it to trade profitably.
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