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Then what the hell are we talking about, dude. This thread was about selling 125 puts with $50,000 in the account. Take my advice, even if your broker is crazy enough to let you, don't do it. As far as I'm concerned, this thread is closed. Cheers...

Since you refrained from insulting me, I'll give you one more go. Okay, lets say you're short 125 puts and you've got $50,000. Guess what, if that stock falls 4 dollars, you're out of here. And if you don't think a stock can't fall from 10 to 6 in a hurry, guess again. (boy...

I'm talking about selling naked in general, it could have been puts she was selling and got burned on bad news.

It just so happens she was writing calls, it could of just as easily been puts with the same outcome on bad news. Okay, so you're saying you will buy the stock if you need to. Well, under your example, you would need to buy $250,000 worth of stock. If you were a broker, would you...

Finally, someone who post in a mature way. Like I said, it was just after the crash of 87, and a lot of brokers got burned big time. I haven't traded options in about 15 years, so I'm sure margin requirements have changed, but I just find it hard to believe a broker would let some guy sell...

Same for you, (I'm not going to waste my time) just go sell your 125 options. Just don't say you weren't warned.

That's it...I won't waste any more time on you.

That's a good question for Linda Raschke...I'll give you the quote from her interview. "When I sold the options, I knew I would be okay as long as the stock didn't go over $55.00. Unfortunately, the stocked jumped from $34 to $65 on takeover news. Suddenly, I discovered you could lose...

Well, I see there's more than one dumb*** lurking on the boards. Because, if you take on 125 naked puts with $50,000 in your account, that's exactly what you are, a dumb***.

I'd rather be ignorant, than a knowledgable ass****

I was probably trading options before you were born ass****. It was just after the crash of 1987, and so many brokers got burned from that, you had to deposit $50,000 just to open an account. (if you planned on going naked.) Things may have slacked off a little since then, but if I was...

No broker in his right mind would let someone with $50,000 in his account sell 125 puts. More likely, you'll be allowed to sell 3 or so at once. When I sold options years ago, my broker required $15,000 per option in the account. It may have changed a little since then, but don't plan...

Hmmmmmm...sounds like if you reverse your strategy, you'll have a profitable method.

One of the reasons I prefer to be a trader than an investor(in stocks). We rode that bull up...now lets ride that bear down. YeeeHaawww... :D

Another book you might check out is "Portfolio Management Formulas" by Ralph Vince. He has about a 17 page chapter on it. An interesting quote from the chapter..."Nothing in the realm of money management could be more useless to the trader" (than the risk of ruin calculations)...

LOL...funny guy. :D

I think one of the main reasons so many guys get there ass kicked trading the eminis is commissions. It's just next to impossible for the retail trader to make money when he makes $7.50, when he makes a tick, and loses $17.50, when he loses a tick. (assuming $5 commish) And what's this...

It's pretty much a no-brainer you've got thousands of traders watching the traditional calculations. (8:30-3:15 central) Go ahead and calculate the numbers using overnight data and draw them on your charts or however you keep them and watch them. If you see noticable jumps in volume around...

You need a mentor, if you're lucky enough to find one. And, I don't mean some guru or vendor that charges a couple of thousand dollars to show you how to draw a trendline. I remember when I read the Wizard books, seems like 95% had met someone they attributed their success to.

What a sweet thing to say. Just the kind of girl I'm looking for...lol