Why Options and not Futures are more popular? Any Options software?

Discussion in 'Options' started by sukhen, Nov 2, 2016.

  1. sukhen


    1. Wonder why Options are more popular than Futures.

    2. Is there any software on Options that can trace best opportunities in the market with the suitable strategies on the basis of risk reward ratio and liquidity?

    3. If the software can find one or two possible strategies to choose from for a specific security (could be anything like index/stock/Futures/Commodities/Forex etc) I am interested in.
    lawrence-lugar likes this.
  2. just21


    Last edited: Nov 2, 2016
  3. Robert Morse

    Robert Morse Sponsor

    Our Lightspeed Trader software has an option scanner https://www.lightspeed.com/lightspeed-videos/market-data-scanners/

    We also offer LiveVolX-LVX-which has option analytics https://www.lightspeed.com/education/livevol-x-product-tutorials/

    And this is a good website to check out- https://marketchameleon.com/
    cdcaveman likes this.
  4. 1. Generally requires smaller money to play

    2. Possibility of greater % return

    3. If you're wrong on a play (pr screw up big-time) as an option buyer, you lose only your premium.

    In futures, your entire net worth is at risk if you let things get "out of hand". (Options have their warts too... they're just generally not as big as this one.)
  5. CyJackX


    You can do really complex things with option combos. Also you can completely tailor your timeline. Notional costs less. No margin needed to be long.

    Now look at futures options...
    cdcaveman likes this.
  6. Aren't "complex things with option combos"... strategies to make "small amounts of money consistently"? (Seems there's an option strategy to try for small profit on every market "wiggle".) Nothing wrong with that, of course. But as a general rule... to make significant/big money, you need to take large, unhedged positions.. and be correct in your plays. You can do that with large directional bets on options, but the opportunities to do that well are limited. Most option players don't wait for those as much as they should.
  7. Robert Morse

    Robert Morse Sponsor

    That would depend on how you do your calculations. If I can consistently buy a spread at $0.50 and sell at $0.60, I'm making 20% on my allocation to that trade, not annualized (before costs).
  8. futures robs you faster than options , a monthly option gives you a month for a trade to materialize , options can be more profitable , futures can take your stop out and go in orignal direction.
  9. That's kind of my point.

    To be an overall success with that strategy, you've got to make LOTS of "nickel and dime" plays successfully. I don't do options myself, but are you not describing "grinding out a good income rate" with various spreads?... assuming of course, overall success. (In my book, "grinding out a good income rate" is not making "real money" from the markets.)
  10. Robert Morse

    Robert Morse Sponsor

    I would not say that an active option trader is more active than an active equity daytrader. Just a different skill to learn.
    #10     Nov 2, 2016