01. Options have three basic elements: expiration date, strike price, call/put (ie direction).
02. Any theory that cannot guide you is useless. Many books are not written by traders, so they may not be very helpful for trading, and some books may even have a reverse effect.
03. The greatest value of options lies in the intraday profit and loss.
04. Opinion is not equal to profit, and there is still a long way to go between opinion and profit. The first step is to establish a point of view, the second step is to find suitable contracts and varieties for you, the third step is to build a suitable position, calculate the risk-return ratio, and the fourth step is to start trading, and then you can make profits.
05. In many cases, you may get the correct market and correct views, but if your trading level is not enough, the correct views will also make you lose money. This is why it is often said that retail investors lose money in the bull market.
06. In addition to researching ideas, investors should devote more energy to research tools. Only after you have mastered various tools proficiently, can you obtain a relatively high profit-loss ratio.
07. There is nothing particularly certain in this world. Everyone must have a probabilistic thinking. If you look at transactions with probabilities, you will become more rational.
08. Before entering the field, think clearly about the most unfavorable situation, and you can accept any situation. This is called good losers never die.
09. In any transaction, if you are still praying for a market a lot of times, then there must be something wrong with your transaction, the position may be too heavy, or the direction may be wrong.
10. You don't want to test whether you can sit still, the important thing is that you don't sit in this chest.
11. For professional asset management, our ability is not reflected in profitability. The important thing is whether we can manage risks well. In the long run, I think this is a place where we can better reflect our value as a professional institution.
12. I choose not to fight against my own humanity, not to cultivate my own humanity.
13. Cut off losses and let profits run. Human nature can't do it, but it can be done with options.
14. The speed of making money is getting faster and faster, and the speed of losing money is getting slower and slower. This is a very valuable feature of an option, and this feature is called positive Gamma.
15. The price of an option is related to three variables. The first variable is the underlying price (Delte), the second is the implied volatility of the market (vega), and the third is the passage of time (Theta).
16. Options have the advantage that you can freely choose leverage according to the strength of your views, but it will not increase your risk exposure.
17. High leverage is a double-edged sword. If people who do not do well in risk control use high leverage, they will be out of the game. But options are not afraid, just fix the loss every time.
18. Today, with highly developed information, there will often be some financial events, because the results are more than expected, causing violent fluctuations in related varieties of the global financial market. By ambush options in advance to do long volatility combinations, you can get the benefits brought by the violent fluctuations excess income.
19. Open a call and a put in the option, making money when the stock goes up or down, and loses a small amount of money if it doesn't go up or down.
20. Options give us the possibility to fight big with small things.
21. Many investors will control the risk during the event, which is not very good, because the stop loss requires an opponent's order, and without an opponent's order, the stop loss cannot be done. Once the liquidity is lost or there is an extreme market, the loss will be very tragic.
22. The positions are all placed at the maximum loss that I can accept. When I place these positions, I am prepared that I may not come back alive.
23. Close the position and leave the market in time when making a profit, and pay attention to choosing the time to leave the market when making a loss.
24. Options that are about to expire often jump up and down in the market, giving everyone some opportunities to pick up money, which contains huge profits.
25. Do subjective trading, or do manual high-frequency intraday trading. If you have a sense of the market, combined with options, you will have a good profit-loss ratio.
26. The easier the option to expire, the greater its Gamma, so it is more likely to appear "fairy".
27. Selling options is a matter with a high winning rate. Institutions generally like to do things with a high winning rate, and retail investors like to do things with a high profit-loss ratio.
28. Selling puts not only earns time value, the biggest value lies in better bargain hunting.
29. If you do a good job in the basic comprehensive research, you can combine options to get a very high winning rate.
30. Every strategy has the situation of making money and losing money. The important thing is that you find a strategy that is suitable for expressing your views, so that your probability of making money increases and the probability of losing money decreases.
31. Options trading can be roughly divided into three categories. The first category is trading on the underlying viewpoint, the second category is trading on volatility, and the third category is arbitrage.
32. The biggest advantage of options is three-dimensional trading. The value of three-dimensional trading is that it can hedge the risks that we do not have an advantage in, leaving only the risks that we have an advantage in, which increases our certainty.