Recent content by cris

Selling naked options worked very good for me .I've been doing it for over two years with great returns.( about 35 % / year). I also don't think the concept needs to be so scary ! In my view , with SPX at ~1870 shorting 1375 puts is less risky then selling a vertical spread at 1600 and...

Thank you all for your input. I will give this strategy another look . Also , I think Robert's advise to hedge with SPY stock is a more viable option . Hedging positions worked very good for me , for instance I've entered a stock replacement strategy on Apple buying deep in the money...

very valid point . That is something that I was afraid of too ! I need to take a good look at this . Another possibility will be to hedge with a long put / call instead of the ES futures , the only thing is that I wanted to avoid paying for the long put / call at the time the trade is placed...

Robert , thank you for the remark . That is another good point to consider- how the margin will play in this . I was thinking that since the ES futures are settled daily , as both instruments will move , I will get additional funds added to my account every day , however I do not know if that...

Thank you for your reply. The early intermediary hedge trigger points , I think , will be a smart move to improve the concept. As far as the credit received for SPX options , it is close to $20.00 / contract which for me is OK and I don't think I will be able to take a biased position in...

The SPX moves pretty much in tandem with ES ( point for point + /- ). I don't think this trade needs to be heavily monitored . The SPX legs are far OTM like 264 points on the puts side and 186 points on the call side . If SPX approaches one of the short positions then I will watch it more...

J S thank for your reply . The reason I'm using a strangle ( naked options ) and not a IC for example is because I can go far OTM with the legs and avoid a black swan situation that will not give me enough time to react with the hedge .As far as the other greeks or other...

Hello traders, I'm kind of new to the trading world and I need some advise in what I plan to do : my plan is to short 1 x strangle on SPX at about 10 delta each leg, ~ 40 to 60 days to expiration . Then just don't mess with it unless one of the legs is touched ( if ever ) , point in...