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 -----
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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