Friday, June 13, 2008

Direction Doesn’t Matter With Delta Neutral

Anyone, who knows anything about options trading, knows that to make profits on a consistent basis you have to predict something. The days of arbitrage trading for the public customer are long since gone, and in fact, even market makers and other professionals can’t make a business strictly out of finding profitable arbitrage positions. Generally, the predictions fall into one of two categories, making directional predictions or volatility predictions. Either way probably can work, although most of the successful options traders that I know make their trades based on volatility, as do I.[...]

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[Source: The Money Blogs]

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