Replies to post #1319 on Boeing Company (BA)

[Porgie Tirebiter]

I went to a series of sessions in Chicago that were hosted by this guy: https://en.wikipedia.org/wiki/Tom_Sosnoff

His emphasis was on volatility and the relationship between realized and implied volatility and using options to develop positions that are neutral in regard to share price movement.

You did well with that $410 strike, but keep in mind that BA could have closed at $394 just as easily as it closed at $426. Short term share price is a coin flip.

The number one mistake most options traders make at the beginning is using options to amplify the effects of a bet on the direction of share price movement rather than using them to develop positions that have a high probability of success irregardless of the direction of share price movement - allowing you to ignore the coin flip.