IG Daily Options

[maurizio999]

 

Hello,

selling daily options is a good strategy to gain?

What are your opinions?

Many Thanks

Edited April 18, 2019 by maurizio999

[dmedin]

I would also like to hear more about options, it isn't very well explained (hence I am thinking it is aimed at professionals only) and I don't understand the approach IG takes of demanding that you spread bet on options since surely the only reason people go for options in the first place (vs SB or CFD) is to limit losses to the premium.  The available options are woefully inadequate and there's no way to take out stock options except to phone the dealing desk apparently.  It all seems like it's totally closed off from individual investors.

[Kodiak]

18 hours ago, maurizio999 said:

 

Hello,

selling daily options is a good strategy to gain?

What are your opinions?

Many Thanks

What happens if the underlying asset moves 2% or more and volatility increase during the day?

The problem with selling options is that you cant add a stop (and limit) but you can hedge by buying or selling the underlying asset

But in the long run (the bank always win) and if you dont blow your account you probably make a profit?

[Kodiak]

If you buy options you need to have an edge and buy if you think the price goes up or sell if you expect the price to go down

And you need also add time to the analysis (because of the options time decay) and choose the best option

If the option expire before the move take place you dont make any money even if you are right in the direction

But for example if you think the market goes up  you can buy an option and wait and no worry about stops and other things (except time decay), you know the max loss when open the position 

The spread is wider but margin = max loss (optionsprice)

Demo account as always a good place to start

Edited April 19, 2019 by Kodiak

[PandaFace]

19 hours ago, dmedin said:

I would also like to hear more about options, it isn't very well explained (hence I am thinking it is aimed at professionals only) and I don't understand the approach IG takes of demanding that you spread bet on options since surely the only reason people go for options in the first place (vs SB or CFD) is to limit losses to the premium.  The available options are woefully inadequate and there's no way to take out stock options except to phone the dealing desk apparently.  It all seems like it's totally closed off from individual investors.

How else would they do it? It’s a spread betting platform after all. 

Would like to see shares options on the platform. That would be funky.

[dmedin]

7 minutes ago, PandaFace said:

How else would they do it? It’s a spread betting platform after all. 

Would like to see shares options on the platform. That would be funky.

Me too ... proper options.

They aren't just a SB/CFD provider.  They do traditional share dealing too.  Just not traditional options.

[Kodiak]

DAX Daily range high-low