Bill Cara on Trading Options
A general discussion about options
For some reason, there has always been a mystique about options. I suppose it’s because options trading represents a zero-sum game where there is one winner and one loser and no other value is created except for the employment of intermediaries.
Professionals who do nothing other than trade puts and calls for their living now dominate the securities options market. The profits they earn (and you lose) also represents much of the bottom line income of the firms that employ them. Always remember that fact that when dealing in options.
Yes, in trading options, you are competing with Wall Street’s most skilled people whose future depends on their ability to win and yours to lose.
For some reason, there has always been a mystique about options. I suppose it’s because options trading represents a zero-sum game where there is one winner and one loser and no other value is created except for the employment of intermediaries.
Professionals who do nothing other than trade puts and calls for their living now dominate the securities options market. The profits they earn (and you lose) also represents much of the bottom line income of the firms that employ them. Always remember that fact that when dealing in options.
Yes, in trading options, you are competing with Wall Street’s most skilled people whose future depends on their ability to win and yours to lose.
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