Recent content by yobo

if you have a Move like that there is not much you can do. Buy the put back for a loss or assume the stock and sell covered calls but most likely at that point a move like that is so destructive and final that you are best moving on and taking the loss. If you have diversified and managed...

When you sell a put you take on the obligation to buy stock at the strike price. You don’t actually own it till it is assigned. Leverage has nothing to do with that but it can amplify the potential losses. The end result is that you start to inventory stock with losses. Which you want to square...

your strategy should be fine until a stock makes beyond a two standard deviation move. At that point you will become an investor holding a stock with big losses or your down and out rollout could be 9 maybe 12 months out if not more depending on how quickly the stock moved. You mentioned WLL...

Somehow I got on their mailing list and was receiving all sorts of expensive marketing collateral talking about the benefits of selling naked options on commodities. They were looking for investors with 1 million or more to invest. So yes it’s other people’s money. I feel bad for them and their...

Bingo! We have a winner. What strategies do you know that use limit orders? Anyone?

Might be or might not be doesn’t really answer the question of what it means to be a provider of liquidity or a taker of liquidity. Care to expand your answer?

Ahhh, the old “liquidity provider” argument. How many people on this thread actually know what providing liquidity means versus taking liquidity? Can anyone answer that question? This is a test and if you get it right and second, can apply it to your trading strategies than yes you will get...

The best time to buy a straddle to catch the ramp before earnings is right after an earnings call in anticipation of the next earnings call. Be sure to buy enough time to capture the next earnings date. No reason to over think it.

Yes, it’s called pair trading or some say statistical arbitration or market neutral strategies. The idea is to watch the spread between two correlated assets such coke and Pepsi. Long one and short the other and hope you have it right as the spread reverses back to the mean. Another example...

You must have mis read my post. I was put 200 shares at 122 even though I was short 10 contracts so I never received the other 800 shares. I sold my 200 shares this morning at 125 to lock in my 600$ gain. So good for me bad for the other person. Even though it could of been much better for me...

This has never happened to me. I sold 122 puts on YY last week and the stock closed at 121.85. I was only assigned two out of the 10 contracts I sold. I thought assignment was required but apparently not and the buyer of my puts apparently wanted to be short the stock this morning. Bad for...

He’s actually right. I sell puts to collect premium on stocks that I think are safe to own if put to me because then I can usually flip the stock to get back to cash or I can sell a covered call to get back to cash. But I don’t sell a put because I want to buy the stock. Of course I’d like to...

selling naked put options for a nickel or dime doesn’t make sense to me either but yet traders like you and me are buying to close Positions at a nickel and on the other side is someone selling to open. These traders and market makers are not stupid and doing it out of good will. They do it...

Do you. Hope it works for you. Now STFU.

Any naked put traders out there that can recommend an online broker to trade with? Running into all sorts of issues with Merrill Edge and their margin calculations. There system treats all naked put sells as if they are cash secured and their margin balances don't update until they cycle...