SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Are you considering quitting your dayjob to daytrade?!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jttmab who wrote (55)1/20/1999 1:47:00 PM
From: jebj  Read Replies (1) of 611
 
>Given that 90% of all options traded are losers.... - James

Isn't this something like say, "due to the market closing down today, everyone lost money."?

The figure that is normally tossed around is 85% of options expire. However, to then follow that with 85% of everone that plays options lose is a little of a "leap"!

First, I think McMillan and others have blown holes in this 85% statement and second, considring many that seriously trade options and understand what they are doing do not just buy/sell an option and sit and watch it go into the dumper without taking action - just as no daytrader that understands what he/she is doing would do so with a stock.

Option traders a usually in several different positions with both puts/calls and various spreads of each or a combo of both. They also usually change these positions as the stock changes.

To say that just because they happen to hold a position that does expire - a position few knowledgable options traders would allow themselves to get into - does not mean they didn't make a net profit on the overall play.

Considering the very high returns and low risks that are available when compared to owing a stock due to the high leverage and low - or no - margin requirements, the question that should be asked is, "Why would anyone EVER want to own a stock?"

jb
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News