Options Trading - According to Phil’s Stock World
Philip Davis’ outstanding and insightful web site had a nice piece this week discussion feedback from a reader and Phil’s response. Here is an excerpt that sums up their exchange…
Regular readers of my own postings here know I rarely buy options (except to close) for all the reasons described above. Don’t be one of PT Barnum’s suckers just to keep Wall Street professionals in new BMW’s. When you read that, “Somebody bought 3000 contracts of some out-of-the-money calls so ‘follow the paper’ and join them,” ask yourself… who sold them those 3000 contracts? I’m willing to bet it was a professional on the other side of that trade.
Is there any other area of life where amateurs think they can compete against professionals on a level playing field and come away winning?
That’s my two cents worth. Only you can decide which side of the trades you want to be on.