Recent content by ra1

Hi Chagi Thanks for your interesting feedback to this discussion. So, let's see if I got this right - I am short one naked call thus unlimited risk if stock goes up (upside risk?) and short one naked put thus limited but substantial risk if share goes down (downside risk?). What do you reckon...

Nice post. I wish they were all as nice and polite as you, cnms2. Cheers. ra1

I know - my post was meant to be tongue-in-cheek, lol. Still, I'm disappointed not to have riskarb's insightful commentary to look at any more. Cheers ra

I'm sorry to hear it, but explains why I haven't seen any posts by him recently. When did he pass away and how old was he? By the way, there is some guy going by "highfreq" pretending to be riskarb - no respect for the deceased!

Hi jj90 I was referring to adjusting when there is some profit in the position. What maverick47 was saying is that a -ve expectancy trade can be turned into a +ve one by adjusting when there is some profit. Obviously your prognosis for the underlying plays a part but knowing which is the...

Thanks for your response jj90. My dilemma is a bit more deep seated than appears in my original question. I don't expect every trade to turn into +ve expectancy, lol, althouhg that would be fantastic and I could stop reading these boards! The question should have read "is there any point...

Ok, it's taken me 3 days to read through this post - and it's been a fun 3 days at that! Now, I've got to know the answer to this - all initial trades are negative expectancy (easy enough to understand) and become positive expectancy when adjusted, but only if trade has moved in our favour...

Hi cnms2, When you talk of iv which iv do you mean? For instance there is the iv of the specific option or the average iv of all the options or the iv of the atm options or the average iv of all the options that have 30 to 60 days (or 60 to 90 days, etc.) to expiry and so on. Cheers ra1...

Mr thirst, could you please expand a little on your money management - I thought you said you were allocating 50% of your option trading capital on this one trade and you've already achieved a quarter of the allocation? Did I get this right? If so then isn't that rather risky? ra1 P.S. I...

Oops, big stuff up, forgot all about the premium - ok, large slice of humble pie for me plus some butt kicking (and no more postings for at least one week). ra1 :(

Adle, I think you should pay very close attention to dis' and buy1sell2's comments. Your strategy makes no sense. Writing a deep itm call means you have virtually no extrinsic value and are at high risk of early assignment and thus locking in a fat loss. By definition a deep itm call has a much...

Not necessarily so if you trade volatility. ra1

Man oh man - I almost wish I hadn't started this thread (it's like a Pandora's box). The only reason I posted my question was to get some feedback from real traders about risk of naked versus non-naked positions. On another discussion board I visit, alledged experienced posters (similar in their...

Thanks everyone for your great replies! ra1

I'm pondering the following: Out of these two stock option strategies, which is the more risky? 1. naked call 2. naked put Imo they are equally risky since a stock can go up or down. However, definitions-wise the naked call has "unlimited" risk and the naked put "limited" risk and this is...