OPTIONS TRADERS CO-OP

[DragonBits]

Profit taking, why should they?

Us normal people take profits, but it looks more like to me the big hedge funds have free rein for a couple of weeks to push their favorites as high as possible.

I understand the urge to buy a put thinking a small amount of profit taking might pay off. And it might happen like that, but it becomes a gamble with small payoff if you are right and a large loss if you are wrong.

I have done this all too often and it can drive you crazy. And if you do give up, that is all too often max pain for traders, then there is a little profit taking and the index does drop a little. Just enough of a drop to kick yourself for not waiting.

But either way, not a gamble that iMO is worth taking in the first place.

Of course, once you buy higher and are trying to average out, you get committed to a course of action that is actually fighting the market hoping for a little does side movement.

Better by far to never try this counter type of trade IMO.

Just my opinion.