/biz/ - Business & Finance

>>1702375
1. Every options contract in existence is a bet on the future direction of the underlying stock. Every one.

2. Options are short-term contracts.

3. Therefore every options strategy in existence is, by definition, a gamble on the short-term direction of a stock.

4. You can use multiple contracts to increase or decrease the risk by increasing or decreasing the conditions under which the options will be profitable.

5. However, every compound options strategy still requires a specific set of market conditions to occur to achieve profitability, and is therefore still a bet on the future short-term direction of the stock.

6. It is impossible to accurately and reliably predict the future short-term direction of any stock.

7. Any options strategy that outperforms the underlying stock does so by leverage. There's no free lunch. More reward = more risk.

8. Leverage isn't inherently bad, but coupled with a losing strategy -- such as trying predict the short-term future direction of a stock -- it will magnify your loses.

9. Margin interest is at least tax deductible; options premiums are not. If you're dumb or desperate enough to use leverage, at least use it wisely.

10. There are legitimate uses for compound options strategies for certain institutions and in highly specific individual cases, none of which applies to anyone on this board.

But what do I know, right? I was simply trained in options trading by the CBOE, earned Level 4 options trading privileges, and traded options (profitably, luckily) for years before wising up. Whereas OP got his options education from a blog website, doesn't even know what Level 4 approval is, and makes performance promises so ridiculous as to defy all credibility.

Caveat emptor.

>>1699736
>shows how little you know about options mate
Whatever you say, kid.

If you know anything about options, you know what this screenshot means. If you don't, then you're a poser noob. Either way, you just got #rekt.