I agree with you,
Say if you bought the long option at a higher delta, if the price of underlying moves the opposite way (in favour of short option position). When do you recoup the money in long option? It would have lost a lot in value if underlying moves the opposite way? Do you usually...
What to do if the underlying market price moves against you if you have naked call / put short options position?
Please answer these questions, I am keen to learn and open to new ideas
Thanks
Generally, what strategy do you use?
Do you recommend doing credit spreads on SP500 futures?
What to do if the underlying market price moves against you?
Please answer these questions, I am keen to learn and open to new ideas
Thanks
Nitro,
How should I go about protecting myself when I have a naked put position and market moves against me?
I usually buy slightly closer to the money put option to protect myself when the market starts edging toward my naked puts trike, so far it has been working well but I am sure you...
What is your entry criteria for writing puts? I m finding writing puts can be extremely dangerous if market suddenly gaps down against you.............
I agree with you. Just a question about writing index options (SP500)
1. How far do you usually write out of the money?
2. What do you do if market moves against you? Any hedging techniques?
Your opinion is greatly appreciated.
Thanks
Who is Stu Johnson? Has he written the book on that subject?
I always sell naked calls and puts on Crude Oil Futures (About 15 - 20 points away for Calls and 10 points away for puts). My position sizing is quite conservative and I use historical data / volatility of Crude Oil as a guide for...
By implied volatility chart and experience, I can tell whether the premium is relatively expensive or cheap. Of course this is not 100 percent accurate, thats why I have a defensive strategy when thing does not go as planned.