After 28 plus years experience in trading and advising traders on how to use options, I feel it important to speak out on the subject of the "Greeks" you know those annoying terms such as Delta, Theta, etc.

Not only are these concepts difficult to understand, they are also a waste of time for my type of trading and should be a waste of time for everyone. Of course this is simply my opinion and several floor traders and the like will vehemently disagree with me.
? #1 The Greeks are way too complicated to make any sense out of. Contrary to those that like to use them. The sound policy of K.I.S.S. (keep it simple stupid) still holds true.
? #2 The “inventors” of the modern day Greeks to value options had their own fund blow up on them in the late ‘90’s. That should speak volumes
? #3 Contrary to what you think, you can only fill a trade if someone takes the other side of the trade. REGARDLESS of what Theo (the calculation for theoretical value) tells you it is worth. So if you think you are going to get a cheaper priced option then what Theo says it should be, ask your self why? It should tell you that no one on the other side wants it. If you are asking to buy an option for higher value than Theo feels it is worth, then once again ask your self why?
? #4 Options are traded and as such they are subject to the whims of any investment that is traded. Fear and Greed. The price is set by those factors.
? #5 The Greeks are mathematical calculations on the norms and anyone that has traded for any length of times knows that markets regularly trade other than normal. So any calculations in a non normal market are of no use to the trader.
? #6 If you use options in any sort of spread trading, (taking the long side and then taking a short side as well) very well knows that if the options is overpriced, then the one bought will cost too much, but then the option sold will give you more. If the options are undervalued, then the bought options will be bought cheap, and the sold option will be cheap too.

Early in my career I studied the Greeks to find them a nuisance. I merely keep up with them to educate and show other traders the fallacy behind them. I get disagreements mostly from floor traders. Those traders are far from Main Street. If they hold a position for more than 5 minutes, something is wrong with their trading. (of course this is an exaggeration, but you get the idea).

Aggressive traders at times will argue against me, but then those type of traders are not around for our next discussion any ways. They have long since taken up another profession.

Options done right can be very effective to an investors portfolio. Fortunately from where I sit, there seems to be a never ending supply of new traders to take their hard earned money. Newbie’s as they are sometime referred to.

After you become educated then learn how to be successful.

Dell Chryst