Options traders care about volatility, not whether prices go up or down. A London options desk trader opens and closes positions without tracking direction, focusing only on how fast prices move.
If you talk to options traders, they don't trade direction. They trade volatilities. They don't care about direction. How far is gonna get there? Yes, but it's gonna get really quickly or it's gonna get really slowly. That kind of things. And that's what they care. I was in the desk with these guys, the options guys in here in London. And one day I was sitting with them trying to understand things. And they said, look, you see these options? We put in the draw. We close the draw. We don't look at them anymore. And I was like, why? He said, we just don't care. It's just whatever. It goes up or down. Okay, we're safe.
