Plain Vanilla Options Trades.

[SOCRATES]

Socrates,

I have a little story that I done during my Holidays, based on another live experience with my good old faithful, and I would like to ask you shall I post it here, or over in the Psychology section.

It can be moved to the Psychology section later, but I think it is relevant to this thread for the moment.

What do you think?

Regards,

If it is relevant to the thread I would welcome it.

Post it here and let us look at it.

Then if it more suitable for the Psychology section it could always be moved.

So, in principle yes, go ahead.

Nice to have you back, by the way.

 

[CYOF]

Sorry Bull, didn't see your reply so don't know what you asked.
Perhaps you could rephrase it in a wy such that it won't get deleted?

It is of no real consequence now - let us stick to Facts pertaining to the desired outcome - and that been taken as the majority looking for consistent profits by Trading Options, not Investing in Options, and to take it a step further, which is what this thread is all about, how a Plain Vanilla Option trader can have an Edge, by Writing Options, as opposed to Buying Options.

I will however introduce some information when I think it is relative to understanding why the majority behave the way they do, as this can not but help in achieving the desired objective, for only those that are interested, of course, for those that are not interested, will never change, and will always get exactly what they deserve in life, and this will be as a direct result of the way that they Think :idea:

 

[CYOF]

THE THOROUGHBRED & THE MONGREL

If it is relevant to the thread I would welcome it.

Post it here and let us look at it.

Then if it more suitable for the Psychology section it could always be moved.

So, in principle yes, go ahead.

Nice to have you back, by the way.

Thank You, and nice to be back, as I missed the kind words.

Here is my little story, and I also have a little video of the event, but as the file is 12mb, I will have to see about that.

The story for now will suffice.

THE THOROUGHBRED & THE MONGREL

Last Friday afternoon, my faithful old dog and I decided to go for a little walk. We took our usual route, and ended up in a field which we normally frequent.

As is the norm, when my old faithful entered the field, he quickly went about his business, sniffing the ground for a rabbits’ scent. Anyone who has ever taken it upon themselves to befriend a dog will quickly come to realise that there are two distinct groups that all dogs can be classified under. Whilst these groups are commonly known to all, many fail to see the significance of quickly identifying the different groups, as whatever group the dog belongs to, will have a very big impact on what type of meaningful relationship the master will have with his faithful dog.

Let us continue with our Friday afternoon walk, to demonstrate, in real life, what exactly we mean by a meaningful relationship between the master and the old faithful, and how it may be wise to consider what group a dog is classified under, prior to establishing a faithful relationship.

It just so happens that the dog I choose to befriend, is indeed a very faithful and obedient dog. Not only is he faithful and obedient, but he is also very clever, so much so, that sometimes I think he is more clever than a lot of humans I have met!

My goof old faithful dog is of course, A THOROUGHBRED.

A THOROUGHBRED is a dog that comes from breeding that has been SELECTIVE. This selective breeding has been done for a purpose; that purpose been to ensure that the pup litter is brought into this world with the best possible traits, or characteristics, that the particular breed of dog should have. In order to identify this SELECTIVITY, a new born pup is given what is called PAPERS. The papers clearly identify the genealogical history of the parent dogs, which ensures that the dog is of the highest breeding possible. In order to befriend a dog of such good breeding, the new master is obliged to pay a small fee to the breeders for their work in maintaining this long line of SELECTIVITY, which enables future generations to experience all the joys of befriending such a magnificent creature.

Now, at the other end of the scale, we have many, many dogs, that run wild and mate with any other dog that the see, The will even try and mate with male dogs, as they seem to know no difference! This leads to bad breeding, which in turn leads to bad traits, or characteristics, the exact opposite to the SELECTIVE breeding group of dogs. Any dog that is brought into this world as a result of two wild dogs mating is called, A MONGREL.

Now, it just so happens that during our walk last Friday, my good old faithful, whilst in the process of going about his natural instinctive business, was interrupted by the continual barking of another dog, who just happened to be A MONGREL.

And how do I now that this dog was A MONGREL?

Very easily – and that is by his persistent barking, which is then further backed up by his unsightly appearance. One can quickly see the difference in appearance between A THPROUGHBRED and A MONGREL, the former been more eloquent and sleek, whilst the latter been untidy and cumbersome.

THE MONGREL continued to bark as he got the clear fresh scent of my faithful old thoroughbred. But, my little old faithful, been THE THOROUGHBRED that he is, just ignored his hideous barking, and went about his natural instinctive business, his nose not leaving the ground once he had got the scent of a rabbit. He was oblivious to the continued interruptions of A MONGREL, as he knows that his purpose in life is TO HUNT, and not TO BARK.

This is the real difference between A THOROUGHBRED and A MONGREL, the former knowing instinctively what is it is he is best at, and the latter, well, not knowing whether he is coming or going, and so, all he can resort to is continual barking, which in effect, is showing up nothing but all the generations of frustration, which have been bottled up inside him, due to nothing more than, bad breeding.

 

[A Dashing Blade]

Db,

Befoe I reply, please tell me, are you the one who claims to be of a medical background - and if so, would you like to clarify a bit more for us, please.

Thank You.

Taking your answer at face value, my reply is no, I have no medical background beyond Biology A'Leval and a couple of historic relationships with nurses.

So, what's your reply?

 

[Crap Buddist]

Thank You, and nice to be back, as I missed the kind words.

Here is my little story, and I also have a little video of the event, but as the file is 12mb, I will have to see about that.

The story for now will suffice.

THE THOROUGHBRED & THE MONGREL

Last Friday afternoon, my faithful old dog and I decided to go for a little walk. We took our usual route, and ended up in a field which we normally frequent.

As is the norm, when my old faithful entered the field, he quickly went about his business, sniffing the ground for a rabbits’ scent. Anyone who has ever taken it upon themselves to befriend a dog will quickly come to realise that there are two distinct groups that all dogs can be classified under. Whilst these groups are commonly known to all, many fail to see the significance of quickly identifying the different groups, as whatever group the dog belongs to, will have a very big impact on what type of meaningful relationship the master will have with his faithful dog.

Let us continue with our Friday afternoon walk, to demonstrate, in real life, what exactly we mean by a meaningful relationship between the master and the old faithful, and how it may be wise to consider what group a dog is classified under, prior to establishing a faithful relationship.

It just so happens that the dog I choose to befriend, is indeed a very faithful and obedient dog. Not only is he faithful and obedient, but he is also very clever, so much so, that sometimes I think he is more clever than a lot of humans I have met!

My goof old faithful dog is of course, A THOROUGHBRED.

A THOROUGHBRED is a dog that comes from breeding that has been SELECTIVE. This selective breeding has been done for a purpose; that purpose been to ensure that the pup litter is brought into this world with the best possible traits, or characteristics, that the particular breed of dog should have. In order to identify this SELECTIVITY, a new born pup is given what is called PAPERS. The papers clearly identify the genealogical history of the parent dogs, which ensures that the dog is of the highest breeding possible. In order to befriend a dog of such good breeding, the new master is obliged to pay a small fee to the breeders for their work in maintaining this long line of SELECTIVITY, which enables future generations to experience all the joys of befriending such a magnificent creature.

Now, at the other end of the scale, we have many, many dogs, that run wild and mate with any other dog that the see, The will even try and mate with male dogs, as they seem to know no difference! This leads to bad breeding, which in turn leads to bad traits, or characteristics, the exact opposite to the SELECTIVE breeding group of dogs. Any dog that is brought into this world as a result of two wild dogs mating is called, A MONGREL.

Now, it just so happens that during our walk last Friday, my good old faithful, whilst in the process of going about his natural instinctive business, was interrupted by the continual barking of another dog, who just happened to be A MONGREL.

And how do I now that this dog was A MONGREL?

Very easily – and that is by his persistent barking, which is then further backed up by his unsightly appearance. One can quickly see the difference in appearance between A THPROUGHBRED and A MONGREL, the former been more eloquent and sleek, whilst the latter been untidy and cumbersome.

THE MONGREL continued to bark as he got the clear fresh scent of my faithful old thoroughbred. But, my little old faithful, been THE THOROUGHBRED that he is, just ignored his hideous barking, and went about his natural instinctive business, his nose not leaving the ground once he had got the scent of a rabbit. He was oblivious to the continued interruptions of A MONGREL, as he knows that his purpose in life is TO HUNT, and not TO BARK.

This is the real difference between A THOROUGHBRED and A MONGREL, the former knowing instinctively what is it is he is best at, and the latter, well, not knowing whether he is coming or going, and so, all he can resort to is continual barking, which in effect, is showing up nothing but all the generations of frustration, which have been bottled up inside him, due to nothing more than, bad breeding.

That was my dog, you know what he was barking about? He was trying to tell your selective bred pooch, "Dont bother with the rabbits round here mate ,they all have myxomatosis , you dizzy *&^%^%$£$**&^$%$er"

Would that stuck up hound of yours listen though?

I mean sometimes.... all is not as it seems, only some just cant see it or dont want to hear it.

Woof, Sausages!

 

[zupcon]

And how do I now that this dog was A MONGREL?

Very easily – and that is by his persistent barking,

Priceless

 

[CYOF]

Taking your answer at face value, my reply is no, I have no medical background beyond Biology A'Leval and a couple of historic relationships with nurses.

So, what's your reply?

Thank You.

Your reply has confirmed that I was mixing you up with someone else - but I did the correct thing and asked before I replied.

You see, many times we think we are responding to someone, when, as a matter of Fact, we are not really responding to that person.

even though we may be responding to a certain question, our dominant thoughts will override our logic and make us post, what can be conscrewed quite rightly by some, as rubbish, pure rubbish.

But to the trained eye, or mind, to be more correct, the reply can indeed make very good sense, as the trained mind KNOWS what it is all about.

There is a big difference here, and I will now ask you a simple question.

Do you understand this difference?

 

[dc2000]

CYOF whilst your intentions may be noble I can't see the point of your constant arguing with those that seek answers from Soc you are IMO merely adding to the watering down of the thread and taking things off on a tangent

 

[FXSCALPER2]

Thank You.

Your reply has confirmed that I was mixing you up with someone else - but I did the correct thing and asked before I replied.

You see, many times we think we are responding to someone, when, as a matter of Fact, we are not really responding to that person.

even though we may be responding to a certain question, our dominant thoughts will override our logic and make us post, what can be conscrewed quite rightly by some, as rubbish, pure rubbish.

But to the trained eye, or mind, to be more correct, the reply can indeed make very good sense, as the trained mind KNOWS what it is all about.

There is a big difference here, and I will now ask you a simple question.

Do you understand this difference?

You really are a funny chap. So what is the point of all these posts then? I mean how many times do you have to tell people you are right and they are all wrong? In any event, why would you care so much and spend so much time talking to people who clearly have no interest in what you are saying. I can understand starting a conversation (or getting into one already started) and exchanging views for a while, but why persist for ages repeating the same thing over and over. I am really curious (from a psychological veiw point) why all this matters so much to you. Even pub bores go home after a while. Having said that, I was being entertained by all the noise. It is just getting a bit too boring now.

 

[CYOF]

That was my dog, you know what he was barking about? He was trying to tell your selective bred pooch, "Dont bother with the rabbits round here mate ,they all have myxomatosis , you dizzy *&^%^%$£$**&^$%$er"

Would that stuck up hound of yours listen though?

I mean sometimes.... all is not as it seems, only some just cant see it or dont want to hear it.

Woof, Sausages!

You might want to try some meditation Buddist - or even levitation

 

[CYOF]

CYOF whilst your intentions may be noble I can't see the point of your constant arguing with those that seek answers from Soc you are IMO merely adding to the watering down of the thread and taking things off on a tangent

DC,

I have mentioned that I am pulling back, but all must know that nicey nicey discussion is not always the best solution - hard Facts need to be pushed in front of peoples noses at times, for many fail to see them, really :idea:

 

[CYOF]

Priceless

And what about posting the Rules now ZU, or have you forgot again

By the way, a Thoroughbreds' Bark is a lot different to that of a Mongrel, but you do have to listen when you can not see, for many will find it hard to distinguish, and will always think that a Bark is just a Bark, when in Fact, there are very distinct differences :idea:

 

[zupcon]

And what about posting the Rules now ZU, or have you forgot again

As Mr Zupcon is the expert here on rules, maybe we should ask him what rules section was broken?

It surprised even me to see how little knowledge I needed to demonstrate in order for ye to consider me an expert. ye do seam to be so very easily impressed

I sincerely hope the other "experts" on which ye are so reliant have considerebaly more knowledge and expertise than I have with respect to the site guidelines at T2W. If not, I fear that ye may be in for a very nasty surprise. :cheesy:

regards
zu

 

[CYOF]

You really are a funny chap. So what is the point of all these posts then? I mean how many times do you have to tell people you are right and they are all wrong? In any event, why would you care so much and spend so much time talking to people who clearly have no interest in what you are saying. I can understand starting a conversation (or getting into one already started) and exchanging views for a while, but why persist for ages repeating the same thing over and over. I am really curious (from a psychological veiw point) why all this matters so much to you. Even pub bores go home after a while. Having said that, I was being entertained by all the noise. It is just getting a bit too boring now.

Well, my good friend, if you do not know then you still have a lot to learn :idea:

Also, I do not tell anyone anything, and I thought that should have been very clear by now - I state what is on my mind -it is my opinion only - everyone have to make up their own mind - no other way -Immutable Laws :idea:

It is boring if you want it to be boring :idea:

It is interesting if you want it to be interesting :idea:

The Choice is Yours - Always Has Been - Always Will Be :idea:

But, everyone must make their own choice - no other way - The Universal Mind is there for all to utilise as they see fit, but to benefit from the Immutable Laws one must comply with the Immutable Laws - to not comply is to, say the least, not acting in ones own best interests.

Oh, I forgot the most important thing - you must first come to a realisation - for to try without fully believing, is to say the least, a fruitless effort :idea:

With that I am gone - I will return time permitting.

Have a nice day - and watch the Option Sellers, not the Option Buyers, for the mind, is indeed, the creator of our destiny. We are what we Think :idea:

"whatsoever a man soweth, that shall he also reap"

 

[trendie]

CYOF whilst your intentions may be noble I can't see the point of your constant arguing with those that seek answers from Soc you are IMO merely adding to the watering down of the thread and taking things off on a tangent

I agree with dc2000 comments, and FXscalper has made the same comment.

Socrates seems to be doing quite well all by himself, and CYOFs remarks are undermining Socs positive thread.

I dont want CYOF to be hounded out like last time, but for someone who has related a story about a pedigree dog that has the breeding to be silent, there is a rather a lot of pointless yapping from him.

 

[A Dashing Blade]

Thank You.

Your reply has confirmed that I was mixing you up with someone else - but I did the correct thing and asked before I replied.

Fair enough

You see, many times we think we are responding to someone, when, as a matter of Fact, we are not really responding to that person.

Just as we know you're really Bulldozer


Anyway, now we've cleared that up, what's your reply, what do you think is the correct answer to the question you posed earlier . . .

There are 4 categories of R/R in all the 60+ strats in options:

1. Limited loss with limited gains.
2. Limited loss with Unlimited gains.
3. Unlimited loss with Limited gains.
4. Unlimited loss with Unlimited gains

a, Which of the above 4 categories would U chose > 1,2,3,4?
b, Which one do you think is the most used by options player > 1,2,3,4?
c, Which one do you think is the most successful in making profits > 1,2,3,4?

 

[A Dashing Blade]

. . .
4. Unlimited loss with Unlimited gains
. . .

Strictly speaking, I'm not sure that there is an (exchange traded) option strategy that mimics this profile.

Long synthetic (long call/short put, same strike, same month) ? . . . . nope. Unlimited gain, loss limited to underlying going to zero

Short synthetic (long put/short call, same strike, same month) ? . . . . nope. Limited gain as underlying approaches zero, unlimited loss to the upside.

But hey CYOF, we never stop learning eh?

 

[Profitaker]

Dashing Blade,

Socrates could lose his shirt, make a fortune, or breakeven. Regardless, we will be none the wiser because he hasn't (and won't) reveal the rationale for his positions.

Given he's taking quick profits, why is he trading otm back months?

Grant.

Because he is just as cluelsss as the guy whose trades thy are (bulldozer). Day trading using options as an instrument is bad enough, on the short side beggars belief, but the far months too ??? I have to..... LOL

Given that this thread was started with the intention of proving a writers edge, would anybody care to summarise its going ? Because unless Im losing the plot, for every proftable put write there was an unprofitable call write done by somebody.

 

[Crap Buddist]

Strictly speaking, I'm not sure that there is an (exchange traded) option strategy that mimics this profile.

Long synthetic (long call/short put, same strike, same month) ? . . . . nope. Unlimited gain, loss limited to underlying going to zero

Short synthetic (long put/short call, same strike, same month) ? . . . . nope. Limited gain as underlying approaches zero, unlimited loss to the upside.

But hey CYOF, we never stop learning eh?

Is it writing a call & being Long a call ?

Unlimtied loss on the write & unlimted gains on the long call

 

[CYOF]

Because he is just as cluelsss as the guy whose trades thy are (bulldozer). Day trading using options as an instrument is bad enough, on the short side beggars belief, but the far months too ??? I have to..... LOL

Given that this thread was started with the intention of proving a writers edge, would anybody care to summarise its going ? Because unless Im losing the plot, for every proftable put write there was an unprofitable call write done by somebody.

When I am answering a previous post, can you please tell us what GFY means??

Thank You.