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The trick is, when there is nothing to do, do nothing. Warren Buffett Quotes

Hi ES, You keep repeating this notion that playing with house money is not gambling. This is akin to saying that if a gambler goes to casino and wins 10k, and plays only with the winning from thereon, he is not gambling. Obviously, he was gambling right from the start. If he is sure to make...

I have read quite a number of posts over the past year that the reason some traders are now reluctant to sell premiums in index options is because VIX is at historical low dropping from over 40 to about 10 now. My question is : is there a similar drop in implied volatility of stocks IN GENERAL...

Thanks a lot, dpt.

I use Interactive Brokers ( IB ) but am not resident in US. If I short a stock option and subsequently exercised against, will IB automatically deduct funds from my account and take up the stock for me. And what if a dividend is declared on the stocks I now hold, will they be sent to my home...

Appreciate some help if possible. Thanks.

Hi Profittaker, I understand you do not deal in US stock options, but to your knowledge, how do you compare them with London stock options in terms of liquidity, tightness of bid/ask especially when we go further OTM? Appreciate any other opinions from others. Thanks

I use Interactive Brokers ( IB ) but am not resident in US. If I short a stock option and subsequently exercised against, will IB automatically deduct funds from my account and take up the stock for me. And what if a dividend is declared on the stocks I now hold, will they be sent to my...

No argument at all. Pardon my choice of words.

Why do you say you will not be short Calls over ex-div day? Don't stocks go down by the amount of dvidend after ex, and shouldn't that be good if you are short calls? Sorry, I am really a novice. Even if you sell further OTM, there are definitely bound to be times when your short strike is...

So after taking into consideration such circumstances when selling at 10% and later realizing a much higher volatility, can you still say they are chronically overvalued? How about stock options, are they also chonically overvalued, or are they undervalued?

The argument here is not whether one should sell naked or bounded, but whether it is better to sell in index or stock options.

Buying or selling strangles?

Is it true to say that index options are chronically overvalued? Even at 10 % I.V? Compare it tot the I.V of stocks regularly at 30-60% , aren't stock options better candidates for selling premiums compared to index options? I understand that their actual volatility is higher in individual...

Makes sense to a novice like me.

Do you trade stock options in US? If not, why not? When you say that you trade regularly on half a dozen stocks that you concentrate on, do you mean buying/selling as in swing type of trading, or is it more towards selling premiums with defensive tactics. Do you regularly hold on to stocks if...

If one is prepared to hold stocks if exercised against, then arguments against stock options like less liquidity becomes less relevant, right? And as mentioned, if subsequent to being assigned the stock, one starts to write calls on it, would this kind of strategy likely to be quite profitable?

Do you concentrate on just a handful of stocks or do you scan a large number of stocks to see if they fit your criteria to execute various strategies?

Yes, but I was thinking why don't they expand it to include selling puts on stocks that they are willing to hold if exercised against, and in the meantime, collect premiums. As for the stocks that they end up holding, they can then sell calls against them, at least on those that they are not...

There are quite a number of funds selling premiums on index options but I have not come across any funds doing the same on stocks. The same goes to traders here. Many long threads on index options but not too many on selling premiums on stocks. Why?