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Date/Time: Wed, 27 Nov 2024 02:44:58 +0000



Post From: Futures Options

[2023-10-04 16:44:06]
Tony - Posts: 519
@User61168

I don't trade Futures options, not able to help on that subject.

I have traded stock options for a few years, I could share a little
bit of my experiences in those years, I assume you already know the
basic terminologies of options.

I were never able to find an ideal strategy, most of the strategies
have profit cap and had to fight time decay (meaning the value of
option drops over time even the price of underlying doesn't change),
of course time decay works to your favor when you selling options,
but you will get terrible reward/risk ratio.

The main reasons I traded stock options are high leverage and great
margin requirement. (i.e. if I think a certain stock is bearish, I
could just buy puts instead of shorting that stock)

I got all those advantages with Futures products, that's why I don't
worry about Futures options either and put all my focus on price
actions. It doesn't matter how 'brilliant' my options strategies are,
at the end of the day, I am really at the mercy of price actions of
underlying.