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Options can be one of the most potent instruments in a traders arsenal. Ira.
Chris Jackson wrote:
> 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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