Jeff Kohler the Option Addict | Stock and Options Trading

Just Kidding. On a lighter note I am sure the disciplined traders out there are enjoying the nice move in CTSH today. Next Monday is Earnings, so keep this on your radar...unless you plan to buy an OTM put to strangle this trade.

The rest of the trades are working out very well, despite a comment I read from someone that said "None would likely be profitable." OUCH! I must admit...that stung a little. When I read these types of comments I have a hard time sharing what I do. If I wanted a critique, I'd ask.

Anyway, I sat in a meeting with a ThinkorSwim Instructor today and had the debate about option buying versus option selling. This is a topic I could spend endless amounts of time on. I admit that I might dabble here or there on some selling techniques going forward. It makes sense, but I am too impatient to sit in front of a computer watching time decay. It takes a patient and disciplined person to be a seller. In my opinion, more so than a buyer. I think this would make an interesting topic to write about this week. Option buying versus Option selling.

I have a few things to finish today, but I will be back in a few hours.

Posted by Option Addict on 10/09/2006 at 12:32 PM | Permalink

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It drives me nuts when I hear a person on Master Talk argue points with you. We have all made mistakes and lost $$ in the market doing it. I am sure that all of you guys at Investools still loose $$ on certain trades. That is part of the buisness. The key for me is to learn from the mistakes and either not make them in the future, or identify them faster so that the loss is less. I had a stock trade that I closed today that I was up 13.5% in a month. It had reached my goal and I was happy with it. It was hard to close because I was winning. After I traded it, it dropped 2%. It may still run, but I am happy with my performance on the trade. Please keep letting us in on the way you are thinking about the market and trading in general. Thanks a bunch

Posted by Anonymous | 10/09/2006 03:04:00 PM

Jeff,

Too many of us are in extreme appreciation for all you do in running this blog to have it spoiled by one person who "is so sure of themselves". Obviously they could run their own blog....what was the address????

Anyway, thanks for your transparency. Though I know you did not post that statement to get showered with accolades (then again...) but be assured there are those that enjoy and need to see the stuff you post. All trading is very personal. I have watched you on MT "gently" guide people in their "unconventional" analysis. Though it may not be the way you or I would see something, if it makes somebody money, that is all that matters.

Right now, you have forgotten more than most of us know. Keep challenging us forward.

Thanks again and to the person that challenged your picks, I would love to see them offer up to the blog their picks and then watch what happens.

Posted by Travis Roy | 10/09/2006 03:42:00 PM

Ignore the Nay sayers. If they new what they were doing, they'd either be leading by example (what you do) or not helping anyone but themselves by saying nothing.

Posted by Anonymous | 10/09/2006 04:03:00 PM

Ignore the Nay Sayers. They add no value. If they did, they'd either be leading by example as you do. The rest of us appreciate your time and effort more then you'll ever know.

Posted by Anonymous | 10/09/2006 04:07:00 PM

Jeff,

About being a option seller or a buyer. There are total different trading styles which may work differently from each individual. It is my experience that most of us life busy lives, with full time jobs that are not related to the stock market. So, it makes sense for us to be option sellers. I have heard that a lot of market makers preffer to be option seller and remain delta neutral because they have to be more conservative. Well, this is just a thought.

Posted by Anonymous | 10/09/2006 05:25:00 PM

Jeff,

Thanks for your stock analysis and picks. I have learned so much from you and appreciate all you do. Keep up the good work. Your help has made a better trader.

- Corey

Posted by Anonymous | 10/09/2006 06:35:00 PM

Jeff, I am reading a small book titled, "The Four Agreements", #3 is; Don't take anything personally.
The quick lesson is that nothing others do is because of you. What others say and do is a projection of their own reality, their own dream (or lack thereof).
Be immune to the opinions and actions of others, do what you do because you want to and because you believe in it. Thank you for the lessons you give because you want to give them.

jeff,
I have tried being an option seller and I would agree with you that it requires much patience then I have. I do plan to use the Credit Spreads/Iron condors stratgies for my growth account while doing directional trades for shorter trades.
I woould love to learn from you on how to be a better Iron Condor and Credit spread trader.

Thanks for all that you do teaching us.

Mahmood

Posted by Anonymous | 10/09/2006 07:07:00 PM

Jeff,

This happened to me once before in VIP. The investools site listed the wrong earnings date.

With CTSH, the investools site has next Monday BUT click on the company press release under news and it lists 10/31 as the earnings date. This makes more sense since the last earnings were released on 8/2. Wouldn't 8/2 to 10/16 be a little too close together?

Can you verify the correct earnings date? This has MAJOR implications.

Posted by Anonymous | 10/09/2006 09:13:00 PM

Check out this web site; earnings.com
It is a great resource for company info.

Posted by Anonymous | 10/10/2006 04:55:00 AM

Jeff, My view is that any feedback is good,even if its contrary
Any comment is possitive if viewed
from a different perspective.you created a place for people to interact. Please don't foster an environment where free expression is frowned upon. You set the tone.I believe if you welcome the nay sayers, you will smile on the inside. Steve. L

Posted by Anonymous | 10/10/2006 11:42:00 AM