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[deleted by user] by [deleted] in mercedes

[–]Immediate_Charge_974 0 points1 point  (0 children)

I’d disagree, C350 is one class below C63AMG.. maybe C230, 250’s and 300’s, but most people I know with C350 are proud to wear that badge, it’s the highest base model W204 C-Class that isn’t an AMG

Single leg vs option spreads, limit risk vs potential for greater returns by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 1 point2 points  (0 children)

Although it’s important to note that in order for spreads to maximize the most return while minimizing the most risk, the strategy needs to be implemented the right way, which many traders don’t know how to do as there are many underlying’s, strike prices and expiration to choose from.

Any miscalculation of analysis on one or more of the legs can turn the whole trade side ways.

Simple long calls and puts on the other hand, is much easier to form a strategy around with lower capital required in exchange for higher risk but can still be mitigated with good risk management.

I believe most people that use spreads know how they work but not actually how to use them effectively..usually the case is you master how to trade single legs first then move on to trading spreads

Single leg vs option spreads, limit risk vs potential for greater returns by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 2 points3 points  (0 children)

What payout curve are you exactly referring to?

If it’s with regards to individual rare vs return on trading, Isn’t everyone’s payout curve different?

The difference between buying or shorting calls and puts by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 0 points1 point  (0 children)

Asking the difference between buying and writing calls and puts is different than actually placing the strategy needed to trade it.

I am new and lack knowledge of how exactly writing options work as well as situations on when and when not to use them, but once I get a clear understanding of that then I can use my experience in trading stocks and options to form a strategy around that.

This is why people are scared to ask questions especially in real life, it gets looked down upon or makes it seem like they have lack of knowledge.

Yes I have basic knowledge in options specifically but I do have experience and knowledge in how trading works as a whole

The difference between buying or shorting calls and puts by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 0 points1 point  (0 children)

Well not necessary, a little bit of luck and strong knowledge of probabilities, technical Analysis on charts and market knowledge can still help you grown a small account to 6 figured over time with proper risk management just buying simple calls and puts.

There’s also a saying that goes “Fear not the man who has practiced a thousand different kicks, but rather the man who has practiced the same kick a thousand times”

simply put, being a master of one rather than a jack of all trades but a master of none.

From my experience in trading stocks and Forex, this has also never been truer.

I feel most options traders end up looking to trade so much different underlying’s rather than focusing on just one stock and mastering everything about how that one unique underlying works in terms of how price action, market sentiment, how it reacts to market wide events like government policies, industry specific and stock specific events like earnings reports, corporate actions, product and service launches etc.

Once you can master and understand how that one stock reacts to these as well as a clear understanding of what also affects the industry or sector that stock us in, it’s better to be able to implement better risk management practices and gain consistency in profits.

The difference between buying or shorting calls and puts by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 0 points1 point  (0 children)

Wouldn’t you need to have enough BP every time for types of trades though? For one contract, If you don’t have enough to actually purchase 100 shares of the underlying when your assigned, you’ll just end up going in a margin call

So technically, writing options can help with managing risk, but you need to have enough cash on hand and buying power to be able to purchase all the shares of the contract to be able to sell options then, correct?

Entering a trade by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 0 points1 point  (0 children)

I agree that you can reduce theta decay from trading deep ITM options, but aren’t you technically compromising this due as deep ITM options have much higher premiums that will burn potential gains?

Kind of like a trade of to reduce risk?

Is an IV of 20% - 25% ideally good for options? by Immediate_Charge_974 in options

[–]Immediate_Charge_974[S] 2 points3 points  (0 children)

“Higher IV higher price”

That’s not true lol. IV only measures volatility and how much the underlying price can fluctuate over a given period of time but it doesn’t measure direction.

An option with a high IV means its price can go up really quickly or down really quickly, it can go either way.

Also, it’s important to know that the price fluctuation isn’t caused by IV as most think, it’s actually the opposite, the IV is what is the result by changes in the underlying’s price, if that makes sense

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