Search results

That is certainly true, but I think the OP wanted a synthetic "buy and hold". Another thing about the strategy vs just buying the ETF, is that you can easily leverage 2X if you choose to do so, without incurring margin interest.

Yes, and you will earn interest on your cash too. But keep in mind the liquidity might be a little problem. If I wanted to violate one of my major rules (never add to a losing position) I would sell some DITM puts, leaps on the XLF.

You got it wrong. The "price" for the DITM 45 put would approx midway between the bid and ask. Which, subtracted from the strike would give you current price of the stock plus the small amount of interest you'd receive. There could be 188% IV for NVDA options but is irrelevant for ~1.0 delta

We are like minded. www.beatingtheSP500.com Not selling anything, more of a performance resume.

That had to be the most horrid misuse of analogy I've seen in a long time. Nothing wrong with selling premium, it's the leverage that will kill Put sellers are avoiding the question What If... Nothing wrong with buying premium, it's the "home run" mentality that'll kill. If your long...

Let's hear one or two of those stories.

Is there any more info available? I'd love to do a quick forensic.

MLK. The only night in the past year I had trouble sleeping. I remember that Monday night vividly. Asian markets down 5-7% each 2 consecutive sessions and the US market hadn't even opened yet. I was short June SPY puts at time. Not highly leveraged though perhaps 1.5X, and bought them back...

"EDIT: dont forget that selling otm puts on an index is equivalent to buying the index at discount. this is always a good strategy for someone that whats to own that asset. it all comes down to how it is being implemented" Absolutely wrong. Selling an OTM put for $2 is not the same as...

It is important to know how many puts they are short in comparison to the principal. If they are not using leverage if they are assigned - then it's actually a valid strategy. If the market tanks and they find themselves short a large number of costly puts with a leverage of say 5 to 1...

Aristotle

I think "collaring the cube" would be a better strategy.

Exactly. Just like I can get a coin to land heads 10 times in row. Mind you I started with a few hundred coins and eliminated any for future flips that didn't land on heads.

Well that's your opinion. Question: Does the 83% correlation figure still currently stand when comparing one days uptick or downtick with following day's action? Gil's summary is "the markets ARE mostly random" "trading is more of an art than what most people believe" No big...

CLOSE! SPY @ 127.72 @ 3:56.20

SPY 127.20 3:00:00 PM GO LONG!

Yes 5-7-5 syllables, not words. My first one was wrong. Martingale great Thick head tells Bill: Double Down Fannie! Freddie! Die!

Selling naked puts can work for while, but you don't get something for nothing. He is kinda saying there are $20 bills in the street. I am an option trader on the SPY exclusively and know it well. There will be a time when those on the other side of that trade will have their due. If there is...

"Fund manager are know to buy at the lows and seel at the high" LOL most fund managers don't know their ass from their elbow. Bill Miller confused Glib traders rejoiced brightly Legg Mason whispered

This is a great illustration of why I follow the golden rule: Never add to a losing position Never, ever add to a losing position Never add to a losing position Which spurs this haiku: Bill Miller on suicide watch, Fannie Freddie about to take dirt nap, Never add to losing...