以前做option时写的note# Stock
t*s
1 楼
Simply, there is no easy money.
(1) Options are expensive most of the time. When they are cheap, they are
about to expire. The far OTM options are cheap, but they will not appreciate
much unless the price has huge move so that they are near ITM. MMs do not
want you make easy money and they will let the underlying stock price move
just one dollar at a time WHEN the options are expensive (you will not make
much money from expensive options) and then the price settles down and they
sell options and wait for expiration.
(2) the options price are heavily manipulated. e.g. when the stock price is
up, you want buy some cheap puts, but find that the put price does not drop
at all; when the stock is down, you want sell your puts, but find that the
put price does not go up at all. After several days, you find that starting
some day your options price suddenly dropped sharply and then becomes
cheaper and cheaper until worthless.
(3) timing is a killer. When holding stocks, time does not matter much. In
addition, it is easy to stop out. When holding options, time value decay is
a killer. More importantly, it is not practical to stop out because the
options price could easily reduce by a half even if the underlying stock
price changes just by a few pencent. In addition, the commission fee is very
expensive. So, if you do not make a significant amount of money, you will
definitely loss a lot.
(1) Options are expensive most of the time. When they are cheap, they are
about to expire. The far OTM options are cheap, but they will not appreciate
much unless the price has huge move so that they are near ITM. MMs do not
want you make easy money and they will let the underlying stock price move
just one dollar at a time WHEN the options are expensive (you will not make
much money from expensive options) and then the price settles down and they
sell options and wait for expiration.
(2) the options price are heavily manipulated. e.g. when the stock price is
up, you want buy some cheap puts, but find that the put price does not drop
at all; when the stock is down, you want sell your puts, but find that the
put price does not go up at all. After several days, you find that starting
some day your options price suddenly dropped sharply and then becomes
cheaper and cheaper until worthless.
(3) timing is a killer. When holding stocks, time does not matter much. In
addition, it is easy to stop out. When holding options, time value decay is
a killer. More importantly, it is not practical to stop out because the
options price could easily reduce by a half even if the underlying stock
price changes just by a few pencent. In addition, the commission fee is very
expensive. So, if you do not make a significant amount of money, you will
definitely loss a lot.
