t********s
发帖数: 4503 | 1 Simply, there is no easy money.
(1) Options are expensive most of the time. When they are cheap, they are
about to expire. The far OTM options are cheap, but they will not appreciate
much unless the price has huge move so that they are near ITM. MMs do not
want you make easy money and they will let the underlying stock price move
just one dollar at a time WHEN the options are expensive (you will not make
much money from expensive options) and then the price settles down and they
sell options and wait for expiration.
(2) the options price are heavily manipulated. e.g. when the stock price is
up, you want buy some cheap puts, but find that the put price does not drop
at all; when the stock is down, you want sell your puts, but find that the
put price does not go up at all. After several days, you find that starting
some day your options price suddenly dropped sharply and then becomes
cheaper and cheaper until worthless.
(3) timing is a killer. When holding stocks, time does not matter much. In
addition, it is easy to stop out. When holding options, time value decay is
a killer. More importantly, it is not practical to stop out because the
options price could easily reduce by a half even if the underlying stock
price changes just by a few pencent. In addition, the commission fee is very
expensive. So, if you do not make a significant amount of money, you will
definitely loss a lot. | t********s
发帖数: 4503 | 2 试了一下google translator，没法看 | t********s
发帖数: 4503 | 3 忘了用签名档
【在 t********s 的大作中提到】
: Simply, there is no easy money.
: (1) Options are expensive most of the time. When they are cheap, they are
: about to expire. The far OTM options are cheap, but they will not appreciate
: much unless the price has huge move so that they are near ITM. MMs do not
: want you make easy money and they will let the underlying stock price move
: just one dollar at a time WHEN the options are expensive (you will not make
: much money from expensive options) and then the price settles down and they
: sell options and wait for expiration.
: (2) the options price are heavily manipulated. e.g. when the stock price is
: up, you want buy some cheap puts, but find that the put price does not drop
| r**s
发帖数: 266 | 4 So basically, you want to long OPTION when the underline stock start to move
in the direction you want,or it has strong trend/momentum, so the time
decay can be litigated. When the stock stay in a range, you can sell option.
But once it break the range, you need to close the options.
The risk now is you expect a stock to move, but it didn't move after you buy
. So don't expect, but react after the market confirms your judgment.
Last note: option is extremely risk, if you don't have good TA, don't trade
it. Hope is always the disaster in option trade. |
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