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Whats the Money Show?

Yeah,I am reading what you wrote and fighting not having my eyes roll to the back of my head.. You are advising him to "just buy a call instead of buying shares"????? Can you be any more nebulous?? More to the point,you dont really grasp delta hedging,and it now appears you are reccomending...

I see said the blind man.You are suggesting a short vertical at inception.. I thought you were suggesting "hedging" the short call with a long vertical,which would put you in a 1x2 or 1x1x1

You do realise you are suggesting a ratio spread at inception,if I decoded your post correctly.. For your sake,leave everything you have learned regarding market makers to yourself... It's frightening

Looks like the minimum is 5k for T bIlls

Heres the thing,he is writing a put on QQQ...IMO thats much different than writing a put on a stock..

When are you suggesting he buys the call spread?? At inception? Thats entirely different position When the stock moves x percent??? With your hedging,he will be in a loose 1x2,i.e + 1x-1x-1 If he is delta hedging,hes definetly over hedging at short strike.... And why should one magically...

Welcome to the world of value investing

Truer words never spoken..

He wants to own it...

oh yes you can:)

WTF??? Thats the best financial cover I have ever seen.... Shit.I would have moved into fixed income as opposed to equities if I saw that first..

Buying a call is closer to making sense,except for the fact that he wont get his free lunch.. IOW,if the stock approaches short strike,the call he buys will cost more than the calls sold. He locks in a loss,obviously with less risk The short put part is absurd.No reason to ride short deltas...

why dont you come up with a example,i.e percent of spot,IV...

If the OP said he sells the call and covers when he is down x percent,ild be quiet...and backtest it.. My beef is he is initially "bearish" via OTM calls without a hurdle rate,and should the stock scream,he flips and gets long without having quantified what he now has

gee,option newbs get smoked when realised vol gets crushed???

think about your strategy,and you have already mentioned the inherent risks you sell a cheapo call,lets say 10 delta..What percent of notional do you take in ( call/stock price) stock runs up to the short strike,short call is now ATM,50 delta. for some reason,you are choosing to buy 100...

Not bashing,illustrating what a terrible strategy it is... Sells naked calls for goober,doesnt manage his risk(delta hedge/close short call),then picks a completely arbitrary point to not only hedge a 50 delta call option,but overhedge and turns a bearish position into a bullish position,i.e...

Dawnster,what is happening here By definition,covered calls is on stocks they already own.. Short stock????

lol..peace of mind,security,or a serious spike in blood pressure (or worse) when the stock tanks