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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?


To: Tom Trader who wrote (4878)9/30/1998 9:47:00 AM
From: Patrick Slevin  Read Replies (2) | Respond to of 44573
 
RE: Options

I was "boning" up on options last night; I have not traded them actively since 1997 when almost every equity trade was an OEX option.

I learned why I can't do it; too many variables for me. Patently obvious I'm sure, but the one variable that breaks down my profitability is this one;

The speed at which the trader expects the underlying market to move

The key point in the book on this issue was the following----"...if a trader is highly proficient at predicting directional moves in the underlying market, he is probably better advised to stick to the underlying instrument. It is only when he has some feel for the speed component that a trader can hope to intelligently enter the option market."

I agree. Bev can do something that I freely admit I have spotty results with.