Re: [RT] Options trading advisors?

["Charles Meyer" <chaze@xxxxxxxx>]

Earl-

 

Thank you taking time to post this sage advice.  Your comments are profoundly simple;  but true!!  Most advisors can't

trade their way out of a wet paper sack and derive all their income from SELLING LETTERS. 

 

Refresher's don't hurt. (:-)

 

Chas

====

 

 

----- Original Message -----

From: EAdamy

To: realtraders@xxxxxxxxxxxxxxx

Sent: Thursday, December 30, 2004 8:38 AM

Subject: Re: [RT] Options trading advisors?

While most new option traders look at options as a way to play directional moves on the cheap, much of the money made in options is in selling net premium. For directional moves, the best value is often long term, deep in the money, options which allow one to purchase very high delta (correlation with move of underlying) for 33-50% of the cost of the underlying.

 

There are all kinds of strategies, however there is a strong underlying need to understand the Greeks and the strategy employed. Anyone who "really knows what they are doing" is more likely to be trading what they know than selling advise. The advisory business is filled with charlatans, and probably nowhere more so than in options. Speaking generally of advisories, there are advisors who sell useful information, however few are consistently "right", and advisories are not something one should follow blindly.

 

Earl

----- Original Message -----

From: RB

To: realtraders@xxxxxxxxxxxxxxx

Sent: Wednesday, December 29, 2004 8:11 PM

Subject: Re: [RT] Options trading advisors?

 Thanks,

 

  Yes, ther are many good brokers who offer autotrade or something similar.  That is not the problem for my friend.

 The problem is, what advisory is honest, really knows what they are doing, with a good REAL track record, and with a low risk and doesn't trade so many positions that commisions come into play?

 And with what Jim Curry said in an earlier post.  Maybe someone that does credit spreads?  It seems time helps you on those.

 

 Thanks,

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