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Klutz, good to see your still awake after your early start! Also a chap Called Nick leeson who was selling OTM puts, and using the premium to prop up and buy futures in the Nikkei, then there was an earthquake! ouch! - bye bye Barings Bank

I myself have sold baskets of Naked call options for seveal of years, mainly deep out of the money calls, 2 weeks til expiry, with time decay in my favour, and yes, it was succesful. BUT the longer I thought about it the worse it felt - say a med research firm who suddenly discovers a cure for...

so your agreeing with me now?

WTF !, it may seem bizarre to you but IV does have an inlfluence on the price! which in turn has an effect on your margin calls! and to think I missed my "out " reading that !

well they won't pat you on the back when your up 100K, or help you out when you gotta put your house up for a margin call, - perhaps you have better friends than me !

success, well, I learnt never to tell anyone, if you must , tell them about times you have lost, and that you are now just survivng and just ticking over. Telling your friends that you made a 40K$ profit last week will be greeted with resentment and envy.

whats a losser?

No worries, u have just learnt lesson number 1.

http://www.gni.co.uk/brochure/fuintro.asp

I think they should introduce an "initial margin" to post on here, to seperate the "players from the sayers".

true, I'd like to know what to do with the 0.01$ premium .

15 wins and 1 loss that wipes out the 15, Missing an opprtunity is worse than losing !

UK , greetings from London

OK, your forgiven, its early, are u in Euro land being up at this hour ?

The premium is everything ! For valuing index & stock options the strike, spot, interest rate and dividend yield are all constants (99.9% of the time ) the only variable is the Volatility which makes up the premium. I traded FX options for an institution, we would only trade the...

We're talking about selling Puts here, giving the right for someone else to sell to u the underlying instrument for a premium. Yes at expiry there is a worse case scenario u can calculate, but the problem arrises inbetween to expiry where with a few sharp movements the MARGIN required by the...

amazing, you're right in every respect, how do u do it ?:confused:

hold position until expiry?

what level/% OTM do u sell ?