/biz/ - Business & Finance

>>1033677
Delta (directional risk) and Theta (premium Decay) I seem to have a good intuitive grasp of. Vega (Volatility risk) I have at least an operational understanding of. Gamma still eludes me as the derivative of delta I can verbalize its meaning as the acceleration of direction. but in practice I can't seem to make decisions on it beyond doing some trades wider and some trades narrower.

Volatility is the leading driver of profit in options selling, Generally, in introductions to people like OP who speak in terms of risk reward you talk in risk reward terms should you try to convert them.
https://www.tastytrade.com/tt/shows/the-skinny-on-options-modeling/episodes/deconstructing-option-prices-to-isolate-volatility-08-05-2015

Sometimes the options are mispriced, Past performance is no guarantee and options are priced on past performance. and you have to be on top of events. That's just the truth. But often even though they blast through, often they return, I forget the rate but it was high, like 75% of the time they'll come back within 90 days.

on personal trading I disagree. equities is one of the last things you do. Trading is serious and it should be treated that way. Options are fairly uniform and do not require much rote memorization, unlike futures. However they very quickly force you to learn the mathematical side of securities trading. Because People and not math are the weakest point in trading it behooves new folks to achieve a firm mathematical foundation upon which to apply their unique personal risk profiles. There is no argument that naked underlyings are simpler. however, in my experience the simple things are uniquely powerful and most often underestimated.
By going full robinhood, you open the door to mysticism, "indicators," and other situational at best voodoo.
Also the Brokers often have checks and balances in place to protect new traders from themselves.
It is a little bit harder to start with options but not much