Hello, I'm the user who made quite a few threads here regarding stock options questions about methodology a few months ago, since the audience of the threads disappeared (possibly to some taking it upon themselves to make the effort to actively paper trade/practice which I appreciate) I've decided to wait a bit to create another thread, and here we are. Regardless, I trade stock options currently for a living independently, and if you'd like to know anything that could help you in your efforts please feel free to ask. I don't believe I know everything, I'm only here to help since I've found what I've done to be quite successful.
I'll try to be more consistent with these threads and answering more questions if it's received well by you guys.
I personally use the Think or Swim application, however Stop Losses are built into the type of order than you are placing on a security. This is more of a technical questions regarding Etrade's User Interface and placing trades so I'd recommend you'd check that out online, (I just don't have it nor do I know how to navigate to it) since I don't use that platform.
For a brief over view of definitions and technicalities regarding different order types....
Realistically it should be available when you are purchasing/selling contracts from a security and setting up your order (at least on Think or Swim) and choosing what type of order you are placing.
I'm not really into options, 1) because I'm a europoor and 2) not confortable with the higher risks (and 3) no idea which plateform to use), but great topic OP it's a shame it'll be ignored in a sea of that's a man posting. Keep trying to educate this autistic communitt one day someone else is going to give it back to you in a way or another
Nicholas Robinson
Fuck it op i don't want your thread to 404, please educate a non-believer and explain a somple yet efficient strategy onegaishimasu
Eli Clark
Options trading doesn't have a higher risk if you're practicing a methodology that works around a large number of small trades (position size wise) to average out to a winning position over time and then so. You should definitely check out probability trading using the greeks and all of the benefits and manipulative aspects contracts have over normally purchasing shares of a security. It's pretty much better in every way except for the complexity that might be associated (though being beneficial if you can work with it). If you're interested in probability trading I can link you a few videos that go over the reasoning behind it, and of course I'll gladly go over it with you. I've never had more success with a methodology of trading, though there's not a lot of flexibility since it's all about averaging around a Delta value/ properly pricing contracts (another amazing thing to learn about) a contract has, as well as beta - weighting a portfolio. Learn about Beta - Weighting a portfolio, and probability trading, and you'll see what I mean. It's honestly the best means of trading I've found or believe exists.
As well, thank you for your kind words, It seems most people on Zig Forums don't appreciate the shitposting and actually want business / educational threads that can help. Suprising?
As well, please go over his videos explaining the basics ( a playlist he has )
Also if this thread goes down due to lack of interest (which is hopefully won't) I'll gladly make another for you user. I only wish to help you friend. After you understand the basics, I'll be able to answer your questions with more accomplishment rather than confusion. Of course, if something you learn doesn't make sense, just feel free to ask, there is no judgement, only answers for those who wish to learn. Thank you brother.
Do link those videos user. Also, say you want to trade a stock you suspect will have volatility. Do you check for skew, IV or other data? Where do you do it? And how do you decide between ITM or OTM options? What about mixing maturities?
Connor Campbell
Thanks user, I'm going to check it , but I can't go into it right now (europoor so bed time for me). Any more general advices ? Maybe I can pop a thread another day to ask questions
Adrian Ramirez
Hey man thanks, I’m going to check out the videos. Looking to get into options. What are your usual timeframes u like to trade? Like are we talking days or weeks or months? Or do u spread your trades out to capture different points in the market? Do you find yourself doing more calls or puts?
Camden Sanchez
Regarding your first question(s), I'm primarily an options seller (and by that I mean almost in every aspect) since they have an advantage over options buyers in pretty much every instance, which is some I can link for you here
IV plays a huge factor regarding the security I'm going to be trading, and even more so the type of spread (Condor, Credit, Strangle, Straddle, etc) It's well known that higher IV levels regarding a security will benefit an option seller more than an option buyer based off of IV overstatement, as well as the fact that a security with an already high IV value has a much higher probability of lowering in value than increasing in value, since it already having a high IV value is an oddity and on the lower side of probability, in simpler terms, since It's already high, it makes more sense for it to fall in value, than to raise. And since my methodology regards option selling, the contracts that I sell (which have a high IV value) will devalue, which credits my account when I buy back the contract at a lower premium than which I had sold it
Regarding other data, measurements of all the Greeks help tremendously, though there hard to grasp at first, they become quite simple since they all relate to one another. It's all about putting probability on your side. Delta is my main concern since it contains a value similar to something created by the think or swim platform such as Prob.ITM which both give you a realistic measurement of the probability of the contract you are looking at selling/buying expiring ITM (something you as an option seller do not wish to happen.)
Think or Swim regarding where I actually trade, as well I have spreadsheets referencing the correct spread to use at certain IV levels to leverage probability. There's more of course, not that it's all "necessary."
Also mixing maturities is fine, it's pretty much a rolling effect so you can have a consistent amount of trades expiring over and over so you're not left dead in the water for a month or so. Then again, you have to spread maturities properly, and you can't do that without a true methodology that you can read and perform without emotion, since it won't be consistent.
Dominic Miller
I'll make another thread tomorrow, and you have to listen to a lot of videos online haha, that's the advice. It grows on you and it feels great to understand options trading. Do come back friend.
Grayson Howard
What are your typical returns on average ?
Angel Wright
1. What is a good options strategies for penny stocks 2. What strategies would you suggest for poorfags like me to know. To poor to be selling options so I can only buy
45-30 Days till expiry (Again I'm an options seller primarily so have that in mind) with an average holding period of 22-27 days, and sold before 15~ days till expiry to capitalize on time decay. And yes weeks and months, I place multiple trades with different expiry dates to have a consistent amount of contracts expiring (since It's my means of living this has to be a part of it) It's a "rolling effect" that most people who trade options for a living do.
This video explains the balance you're questioning with calls or puts, when you read a options contract table you'll see how Calls/ Puts are reflective of one another pricing wise, so it's only in your best interest to put yourself in the middle of the market with balance. Staying in the middle of the market it key, which is defined by Beta - Weighting.
Save your money and learn about the Greeks, Options trading basics, and how to properly create a method to trade with. It's what I did, and it's honestly the only way to actually trade In my mind. You can make a ton of money, no doubt, but it's not the lottery, so pace yourself and you'll appreciate the reward.
Check out the previous video I linked about consistent income while trading options.
William Garcia
More and I’ll tell you all you need to know
Jason Phillips
Sure, she's some random thotty on my ig but I gotchu coomer
What exactly do you mean by options pricing, the premium? You can check the IV rank of a security and it's past to compare if the current IV level is actually considered high or not. In essence, even if the IV value seems high, it could have been at that level for sometime which has normalized it so it's not considered high (Like a IV level of 85 for 2 years straight). (Basically it's just a number and you have to reference historical data) and That's IV rank or IV percentile, both very useful, I prefer IV rank. Really the IV value you see on a security is pointless unless you know its historical value. Great questions though. I hope that helps.
Also what are the chart patterns that you look for when making a call/put? Any strategy that you recommend the most or is it a mix?
Evan Lewis
Is it irresponsible to trade only 3+ SD options?
Justin Evans
I honestly don't use Technical Analysis anymore, It's all based off of probability, Greeks, my portfolio, Hedging, Laddering. Also I don't trade any naked Call's / Put's since they don't conform to my methodology and I've never felt the Risk/ Reward to be attractive.
Honestly Ichimoku and a few other indicators have proven valuable to me, and there's a youtuber that goes over backtesting and how valuable it can be and he has fair points, but it's so much more difficult than just trading options using my previous points. Indicators adjusted that collaborate with other indicators is the only real way too use TA, and even then I don't like it. So I guess Ichimoku would be about it off the top of my head from when I used TA when I was younger.
Thanks for dropping this knowledge user. Another question I'd like to ask is what mistakes did you do as a young trader. Or just in life that you would advise against. Need some guidance rn with how the world is at the moment
Jaxson Evans
So optionanon, if you're mostly a seller and don't sell naked calls/puts then you must hold the underlying asset, right? I also meant to find a website that has historical data for IV or skew like skew.com has for crypto options. And thanks for all the insights!
Brandon Hall
I made quite a few, mostly regarding TA and thinking I had something that worked but really didn't in practice (Or at least consistently lol) but honestly I discovered options trading not too long after and everything pretty much changed from there. I'd advise against not having a written down strategy. It's all about having something you can base your trading off of the doesn't rely on emotion whatsoever. That's the main key to success.
Brody Miller
Yes I do hold the contracts from the underlying asset for a somewhat lengthy period of time which I mentioned in a previous post,
>"45-30 Days till expiry (Again I'm an options seller primarily so have that in mind) with an average holding period of 22-27 days, and sold before 15~ days till expiry to capitalize on time decay."
Which is entirely based off of probability trading so it's not a universal rule of course.
>I also meant to find a website that has historical data for IV or skew like skew.com
Why not just use a measurement inside a trading platform like IV rank or IV percentile? It's pretty much an indicator regarding IV's historical data for a security.
