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Replies to #618 on Option Education

farooq

09/18/17 12:40 PM

#619 RE: naturalborninvestor #618

1- 90 % of option buyers lose money so slowly number of player dry out.
2- In low volatility environment option buyer rarely makes money only writers could but when market is dried up writing does not carry enough premium to justify risk of aggressive writing.
3- We are in one of the longest low volatility bull market ever.
4- Computers are in control they have no emotions to make gyration happen. They buy dips and sell high.
All are my opinions there could be many others.

leemalone2k3

10/25/17 9:04 AM

#620 RE: naturalborninvestor #618

What Farooq said. Also volume is low because few people understand how to trade them compared to stocks.

I sell options in most cases, and let them expire worthless for max gain.