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Trading SystemJoker Trading System : Options : prevnext Holding Options Longterm

Long term investing instead of scalping or swing trading with options to make a killing. Real life quote: I scalped SCKTW from .25 to .50 and watched them go to 230. Is this a veritable idea or just a dream that never comes true? Hard to say, but it seems clear that one can't enter a trend with a hard stop loss as it may be appropriate to get on a trend in a stock or commodity. Option market makers are the biggest sharks of all. If prices of the underlying stock reverse they drop the price of the option so that its implied volatility drops too, meaning they buy back your option for an unfair low price.

Perhaps this is the chance for the long term option player. Getting on a trend during a price pullback that makes the option disproportional cheap, while the main stock trend is still intact.

Fundamental analysis about the stocks possible future and rigorous money management are further important ingredients for this strategy. The stock must have a chance to double or triple and the investment in the option should be viewed as the buy of a lottery ticket. Hold it and make it or lose it. Every option trading is a fight that only the market maker can win.