Buying options is a sure way to lose money in the long run

I have seen a few folks up here spreading their stories of how many times of quick money they had made in trading options. The instant "riches" have drawn a lot of interests among the new comers and old-hands alike. It really caused my concern. I just posted a message here in replying to another folk's self-claimed quick success. My message to anyone who wants to jump into this "Ultimate Game in Town": option trading is a sure way to lose money for most folks. Stay away from the game unless you think you are the lucky few!

Below let me re-post my original message:
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I have seen a few guys here boasting how much money he/she has made from buying calls. There is no way to verify them. I used to trade on the CBOE trading floor myself, and any experienced floor trader will tell you that buying options hoping to hit a jackpot is a sure way to lose money in the long run. The main difference between a professional option trader and a non-professional: a pro knows how to short and collect option premium by using various spread strategies, while a non-pro just keeps buying option premium and watches his option premium decaying away.

所有跟帖： 

• 多谢教诲, 可否举写例证. -2459- ♀ (0 bytes) () 11/25/2005 postreply 20:03:20

• I lost 70K from option trading. -*赖昌星*- ♂ (0 bytes) () 11/27/2005 postreply 14:33:43

• My account gain 60% by stock trading in the past 4 weeks. That's -*赖昌星*- ♂ (0 bytes) () 11/27/2005 postreply 14:52:11

• 回复：Buying options is a sure way to lose money in the long run -土洋老插- ♂ (160 bytes) () 11/25/2005 postreply 22:53:40

• 回复：Buying options is a sure way to lose money in the long run -allencheng- ♂ (1275 bytes) () 11/25/2005 postreply 23:19:26

• 话说得绝对了 -smartmoney- ♂ (121 bytes) () 11/26/2005 postreply 08:33:27

• 那么SELLing options is a sure way to win money ? -68223- ♀ (204 bytes) () 11/26/2005 postreply 12:55:30

• seems you don't know what is selling options -burrito- ♀ (225 bytes) () 11/26/2005 postreply 13:30:48

• Only a fool will sell naked calls unhedged -cctv4MsHT- ♂ (362 bytes) () 11/26/2005 postreply 14:15:41

• Yes, naked call is very risky, but much higher return -burrito- ♀ (41 bytes) () 11/26/2005 postreply 15:36:03