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Hi esc_trader, Thank you for sharing this info with us. I have one question; What is the historical limits of your spread?e.g has the spread ever been to 100 levels?(+/-) Thanks

I am looking into doing some intermarket spreads. Do you know any unusual ones???? thanks

You are probably right but I am more comfortable with indexes :)

thanks for bringing this thread back to live again. Selling naked is all about risk management. although the reward is not as much as one hopes, one can generate steady income from it. Lately I am covering my naked sells with deep OTM buys which some may argue that totally unnecessary. As...

If you have a quick look at DJI's recent performance, you will see that 1.2 % daily move is not as rare as one thinks. i think, that will be the handicap of your model.You need to test your model on different markets where the % of moves are not as big as DJI's.

"Any thoughts on how a retail trader with a model predicting 78% chance of a minimum 1.2% move (avg. 1.5%) can exploit?" In order to make any money on your model, it needs to predict this move before the markets close previous day. You will find that futures trading will probably...

I think you mean strangle as with straddle you sell the same strike PUT/CALL. try www.hoadley.net/options I personally do near OTM strangles. as a seller I do not worry to much about the greeks nowadays. Selling premiums are OK as long as you are aware of the maximum risk you are taking...

I agree with your observations, and would like to add that as most of the posters are not actually "real traders", topics of the posts are really becoming irrelevant to a trader site. It is like Wall street Journal having National Enquirer's news. People who come here don't want to read about...

I only started selling Naked PUTs recently. In the past I always had a cover.That is the reason i started this tread, to see if there is anybody out there doing the same thing:)

Nope we dont agree on this as well; 1) selling naked PUT and going long the underlying does not have same P/L. Same L but not same P.

Sorry to disappoint you but I have been trading options for some time.Pls read my earlier posts. I think you have misundersood me. I never said trade options on expiry day. I said Expiry play where you sell PUT during the life of option e.g 30 days before expiry and and do not buy it back...

Nope I am too late:D :D :D :D

I suppose we cannot really compare trading futures against selling PUTs naked as they have different risk/reward ratio:( :( But from risk point of view only, they are more or less the same:) :) OK ,it looks as that once again,we miss the topic of this tread; IS there anybody out...

Lets assume that we are talking European style options and expiry plays, where greeks don't mean much at expiry. I am trying point out that selling naked PUT is no more riskier then trading eminis long/short With selling options even if the market goes against you, time will be on your side:)

Which one moves faster then the market it self; 1)futures(eminis) OR 2)Options

I meant to say 1) being long on emini OR 2) selling naked PUT Soorrrryy:

Which one is riskier; 1) being short on emini OR 2) selling naked PUT

Further more; If you get ruined by selling naked PUTS(pref index ones) you will not be alone.There will thousands of people around you whose pension fund ruined as well. They will understand. On the contrary if you get ruined by selling naked CALLS, while most of the people enjoying their...

NO Aphexcoil, I mean PUTS.. with PUTS I know what is my ultimate risk, with CALLS can you say the same??

Sorry to hear that, But it looks as that it did not dampen your spirit. What you had there,the reward was 0.01% of the total risk, which I agree it is not worth. The play I have at the moment is 0.05% return on the total risk. That is with index going to 0.00 which I dont think would ever...