I have to admit, I really have little to no respect for scalpers. I view scalpers as the scavengers of society, those animals that must feed off the remains of others or else, look for the uneaten pieces of food that others have left behind. They are the ones who would readily accept sloppy leftovers, cheat on their wives and husbands with their wives and husbands' best friends, and never contribute anything meaningful to society except to look for opportunities into benefiting from someone else's misfortune.
There is a psychology to scalpers- which is dog-eat-dog world which I never took to heart. Why would I sell 100K shares of a stock I hoped would fail then buy it back 2 cents later?
I suppose at heart, I prefer to watch those equities when they fail, I never short them in options for obvious reasons. In options, it is much easier to be bullish on particular stocks. Buying and selling puts were for losers. People who accumulated a lot of puts were basically people who decided that a stock was at a long term high, and then short them. They were short term thinkers, these people who believed 2008 should be a recurring year every year because they liked it when companies failed.
Scalpers were men who typically didn't care now know much about the stock they were shorting or buying at all, they only cared about the 1 cent. They were Wall Street's hangers-on and leeches; but thanks to algorithms, they were now replaced by automated programmes that would buy at the bid and sell at the ask.
And ironically scalpers' stories were all the same: They eventually burnt out; blew through their accounts, were addicted to meth and adderall, and decided to either go traveling around the world on a boat or go into real estate.
What is nice about options, is that one has options. Like a potential lover, you choose which ones catch your mind's eye, and then you strategically think of a way to seduce them. When they're pulling back, or at a dip, is when you go in for the kill. Or else, you make love to them while they're in consolidation mode, and then analyse them for short term or long term. Is this who I want to be in a short term or long term relationship with? The numbers by themselves, are for fools. The potential for a beautiful long-term relationship was always in the fundamentals and the technical charts of a particular equity.
I fell in love with AAPL because it made beautiful, efficient, machines that were pleasing both to the eye and to the wider demographic. I fell in love with CMG & WFMI because people wanted to be healthy and eat well; I fell in love with TIF because young men will always want to woo women with beautiful shiny things. With options, you never really had to buy the stock, you simply rode on its bullish trend, then exited, simply without putting in much risk aside from your premium. That was the beauty of long calls on options. You saw a talented person you could fall in love with, made a bet that this person would be successful, then simply banked on it before the expiry of your options contract. You never lost more than what you initially put in as your downpayment, but the rewards of that relationship were far more bountiful, if you set your eyes on someone whom you found worthy of your attentions.
You weren't actively looking for failures, which could be costly in options, and your losses unlimited, you were looking for successes.
Men who were bulls had entrepreneurial spirit. Men who were bears were looking for a quick buck.
In options, buying long puts were for losers who were looking for losers. But why focus on the negative? We were in a bull market in this year 2011. Why not simply capitalise on it?
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