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I have just read the new options book by William Gallagher - The Options Edge.
He did
an empirical study of actual traded options prices ( 1 on 15 futures
markets) and it came out that there was no clear bias for option writers or
buyers -
something of a shock even to him.
The positive side of that is that there does not appear such a bias to overcome
when
buying options i.e. makes buying the right kind of options a reasonable
proposition.
BrentinUtahsDixie wrote:
> If you know you have a weekness exiting trades then you should emphasize
> that and vice versa.
>
> This is overworking a fine point regarding entrys and exits but one of the
> things that happens when learning about trading is that someone comes along
> and makes a statement that sounds true on the surface and then many others
> pick it up and go around stateing it as fact when it may not be factual at
> all. Things like "90% of all options expire worthless" and "the market is
> never wrong". You should question these kind of statements rather then
> parroting them. If you find youself doing this without questioning and
> seriously thinking about the issue then you are also likely to be a trader
> that is always jumping in the market with the wrong crowd at the wrong time
> just because someone said it was good idea, not because you did your own
> research and developed your own skill at timming your entrys.
>
> Brent
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