McHale
Regular
@alwaysgreen, that ain't necessarily so, for people who buy and sell options 2 of the main things you are looking for are: 1. volume and 2. volatility - there is much much more, however at present there is 1 other very important thing that comes to mind, and that is the trend - and BRN has been in clear downtrend for well over 13mths - you know what they say: the trend is your friend. So it has been hard to lose on Puts on BRN for a fair while (if you buy the right kind of option - and that is a whole lengthy conversation in itself).View attachment 30445
In all likelihood, we will be out of the 200 in the next rebalance. Currently sitting out of the 300.
Looking at this positively, hopefully there's less instos and therefore, less shorters.
Yes agreed but the psvr2 has just been released to market. I think it's too early to include Akida but again, would love to be proven wrong.
As much as "shorters" are "hated" there is a sensible other side to watching your account getting smashed, and that is buying Puts to hedge your losses. If I had any notion whatsoever that it was going to be a period of over 14 months since the last market moving announcement (and it wasn't really an announcement - it was Merc going public on their adoption of Akida), I would certainly have bought some hedging - the thing is I really felt this time last year that there would be more market moving news before now.
I am also very clear that I wasn't the only one around these parts, that felt that way, - such is.
So rather than taking profit at the highs and buying back at a lower price, with options you can hedge, and if there had been a market moving announcement you are still holding your full basket of shares (not second guessing yourself) and don't miss the upside from the market moving event.
You may be correct about shorts, but as an "ex" options trader FWIW I don't think it will make much, if any, difference. I will repeat another thing which I have mentioned in my infrequent posts; and that is, IMO - that the high frequency trading bots are your real enemy, @AARONASX who is a regular here has put up a youtube vid called "The Dark Side of the ASX", he has put up the vid and link on a number of occasions most recently in his post #46,966 on Feb 15th 2023.
If you are at all interested in this "shorters" story that continuously crops up on these pages, you should really take a look at it - it may give you a more educated view on ASX price movements, and the main driver of this - which is high frequency trading - bots on the ASX. Options traders definitely have a place in the price movement picture, but bots (which implement small parcels to make price movements up and down) and they are responsible for 70% of price movements on ASX.
IMO some of the stuff that goes up on these pages with regard to shorting, gobsmacks me - I can't believe it, in that, as I understand options trading, (and I have traded other more sophisticated options strategies and not just Puts and Calls - and options traders don't just position for Put trading they definitely use Calls as well) from the posts that I read here it would seem that shorters cannot possibly lose, and that buying Puts is simply a walk in the park - and I can tell you that is most certainly not the case.
Options traders can and often do lose money, the ones who (generally) can't lose are the market makers and the various banks and brokers who sell the many differing types of options and options strategies that are available.
Last word this is definitely not some bleeding heart story on behalf of options traders, but it is simply offered in the interests more of education, and a more informed discussion of the subject. I could say a lot more, but I still have a business to run, so have to go.
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