Search results

Thanks, I see.

Say the underlying is $90 and you sell put 85, now the asset plunged to $60 and after a day continued to $40 and to $20. your put (as long as you have it) has unlimited loss, or am I wrong?

sorry for the question, how is it possible that writing naked put has limited loss?

I don't like Excel macro packages either, had a lot of bad experience with them, so I finally found this great software and for the last 3 months I've been working with it, made nice profit and can test each of my positions with every risk angle (e.g time decay) long before I execute it. I work...

A more easy way is this simulator software I use www.tradoroptions.com It has "Market simulations" that does exatly that, so I can clearly see time decay theta.

How about the fear or inconvenience from being partly exercised or Dividend distribution? It may require huge efforts to manage those positions as oppose to index strategies, or is it? Doesn't it make sense for individual professional traders to mainly trade index options? I am trying to...

Hi guys, I am interested at learning from more experienced options traders, so... 1. What do you find more profitable trading Index or Stock Options (not considering Asset insurance as trades, just pure options trading for profit)? 2. If you trade American Options do you trade them...

I like it, work with it for 2 weeks now, excellent.

I've come across this software "TRADOR Options" and it seems very interesting and friendly. I'm just begining to learn working with it, so not much experience. take a look www.tradoroptions.com

You may win a few, but eventually lose a LOT.

Yes, you're right in general. I also feel something is about to burst, so I go neutral and almost with no down exposure.

I didn't actually traded FTSE, only reading about it and keep track. What are the main strategies You use with FTSE?

Buying OTM options, is actually a gamble, so the outcome is uaually a loss. Instead, I would suggest spreads that also have a limited loss and also can comes up with calculated profits.

Checkout Lawrence G. McMillan's Book - "Options as a strategic investment". I Loved it.

Hi, I wish you'll have more... But I doubt that. It's like you're going to play Holdem Poker with 700$ against players that have 100,000$ . Your chance is so low....

Yes, your right. But assuming that the stock will go to zero is risky with stocks in general. I thought he refered to the Options, If trading naked options or adding them to the asset.

Sorry, I didn't understand the answer. Can you come up with a clearer one pls?

Thanks Brighton, I didn't know that. I'll check it.

As I posted in another post, I work with IB, and after trading hours I am not able to get the options chains from them, so... Thanks Barney, I'll wait for you code, it will sure be helpful. Thanks for all the replies

I've tried this position and it's very interesting. I think you are right, and with a stop loss, it's quite a well calculated risk / odds. In fact I also like to trade spreads, but what's good in your example is that you have a high positive delta and a near zero theta and vega, so better odds...