Option Spreads, Credit my Debit Message Board

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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: NateC who wrote (494)	2/13/1999 7:39:00 AM
From: dealmakr	Read Replies (3) of 2317

Nate, Its not how much you say its what is said. Options are one of the more interesting ways to play the great game. I have been trading them for better than 20 years and it gets better all the time. Some of my greatest losses in the market have been from being on the wrong side of an options trade along with some good gains from hitting a few big leverage plays. The learning process never stops nor do the opportunities for profit. Along with those opportunities comes the risks and one way to balance those risks is by having a better understanding of the dynamics of how the options market works. As far as having 2 million new traders expanding market volatility, I think that you can see this in the market today with more and more day traders playing moving issues like the internuts. Liquidity and volatility in the market today IMHO make options a great way to hedge or speculate on these market movements. Learning from established options teachers like Larry McMillan or Bernie Scheafer can give you a better insight to more profitable strategies that the general public doesn't take the time to learn. In spread trading, you try and fade that volatility for a profitable gain. I like to spread the same issues over and over like OEX,IBM,and DELL etc. Having the liquidity in these types of issues can make it easier for entry and exits along with a better chance of a profitable trade if your directional analysis is correct. Most of the general public will be buyers of calls and puts and don't use other option strategies well. The specialists and MM's of options use very complicated hedging to protect their exposure as best they can. By learning about how these pros make their markets a better understanding of options trading and a better chance for profits is available. Good Trading Dave

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