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Old 01-09-2018, 04:30 AM
 
87 posts, read 37,333 times
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Hi!

Given that options trading is a zero-sum game and that many people say that most traders loose money, who are the lucky few that are making the money? What are they doing right?

Doctor TR
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Old 01-09-2018, 04:48 AM
 
2,673 posts, read 2,624,834 times
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Back testing to see how a strategy has done historically, though nothing guarantees future results will be similar to past results. You might be interested in this:

Options Strategies | Stock Market Analysis

I don't agree that options are a zero-sum game. If someone writes an OTM covered call and the call is exercised, both sides made money.
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Old 01-09-2018, 05:26 AM
 
1,767 posts, read 1,742,030 times
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Doctor TR- why don't you just apply for an options and margin account? Try your gambling hand & see how you do- this stuff amuses me because everyone is trying these get rich quick schemes and in all reality the most successful portfolio's are actually quite simple. There is a difference between actually investing and speculating. I have seen many try these speculative measures and after loosing so much realize they have no skills at it and throw in the towel but a few will continue to believe their luck is going to change and their fortune is around the next corner until they have no capital left, which one will you be?
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Old 01-09-2018, 06:04 AM
 
87 posts, read 37,333 times
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Quote:
Originally Posted by jdhpa View Post
Back testing to see how a strategy has done historically ... You might be interested in this ... I don't agree that options are a zero-sum game ...
Dear jdhpa,

Thank you fir your reply.

(1) Testing doesn't answer who's making money and why.

(2) Good link!

(3) Right on! I was referring to other types.

Doctor TR
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Old 01-09-2018, 06:09 AM
 
87 posts, read 37,333 times
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Quote:
Originally Posted by oneslip View Post
Doctor TR- why don't you just apply for an options and margin account? ...
Dear oneslip,

Thank you for your comment.

Yesterday, I applied for a margin a/c w/ TD Ameritrade.

You didn't answer the question who's making money and why.

Doctor TR
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Old 01-09-2018, 07:36 AM
 
26,191 posts, read 21,572,016 times
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Quote:
Originally Posted by jdhpa View Post
Back testing to see how a strategy has done historically, though nothing guarantees future results will be similar to past results. You might be interested in this:

Options Strategies | Stock Market Analysis

I don't agree that options are a zero-sum game. If someone writes an OTM covered call and the call is exercised, both sides made money.
It is zero sum. The calls being covered are just a distraction and not relevant to the options being zero sum
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Old 01-09-2018, 09:11 AM
 
Location: Texas
5,872 posts, read 8,091,523 times
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Quote:
Originally Posted by DoctorTR View Post
Hi!

Given that options trading is a zero-sum game and that many people say that most traders loose money, who are the lucky few that are making the money? What are they doing right?

Doctor TR
Most traders lose money because they don't have the discipline or strength (analysis, technical, and sad to say math) to judge and structure the proper trades, and exit strategies.
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Old 01-09-2018, 09:13 AM
 
Location: Texas
5,872 posts, read 8,091,523 times
Reputation: 2971
Quote:
Originally Posted by jdhpa View Post
Back testing to see how a strategy has done historically, though nothing guarantees future results will be similar to past results. You might be interested in this:

Options Strategies | Stock Market Analysis

I don't agree that options are a zero-sum game. If someone writes an OTM covered call and the call is exercised, both sides made money.
In general if someone who is writing a OTM call and has structured it correctly, when ASSIGNED should make money. Those who are EXERCISING their long calls should be making money if they follow the correct procedures. However, you would be shocked to find how many aren't on both ends.
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Old 01-09-2018, 09:42 AM
 
7,899 posts, read 7,109,416 times
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Trading is not a question of losing money. The issue is making less with active investment than can be made with passive. A few skilled and/or lucky traders come out ahead. Most do not.
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Old 01-09-2018, 09:55 AM
 
Location: Texas
5,872 posts, read 8,091,523 times
Reputation: 2971
Quote:
Originally Posted by jrkliny View Post
Trading is not a question of losing money. The issue is making less with active investment than can be made with passive. A few skilled and/or lucky traders come out ahead. Most do not.
Maybe we're talking about the same thing but using a different langue to describe. I believe that trading and investing ARE NOT the same thing. Trading is short term (mostly) technical based, where the goal is a positive RGL.

Active investing and passive investing are long(er) term and focused on portfolio & goals based objectives.

I do agree that most "traders" don't make money, simply for several reasons. Will, skill, time.
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