Anyone selling premium only

Quote from hoop121:

i never said to sell 90% probability OTM. i thought we were talking about selling premium, but nothing more specific than that?

your original post said you were looking for other traders who sold premium and understood the risks. i'm simply putting another type of way of doing it out there.

it's been 5 years since a major correction and right now premium is at an extreme discount. even Talib himself said that tail risk is already under-priced, so right now is an ideal time to purchase some.

it's simply just another way to hedge the premium you are collecting. just like a put spread, just like an IC, etc.
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thank you you are right i SHOULD BE CLEAR

Is there is no specific level of OTM ITM that makes sense over and over its market Vol. or direction specific ?
 
Quote from metameta:

right now is not an ideal time to implement a put selling strategy since volatility is so low. wait for a more ideal time, debt ceiling, etc...

at low-moderate leverage you should expect around 10% per year with this strategy. if you leverage up more but that increases cat loss risk.

in an environment where savings acct pays 1%, 10 year tsy pays 2%, what is wrong with 10%.

there is risk in everything but the put buyers pay the first 15%-20% of the loss. (i.e. sell 40 put strike on 50 stock).

you can feel especially confident the market is about to turn up when dr doom goes on tv to say although we are down 10% another 20% is right around the corner, or if they start talking about the death cross and put pictures of spiders on front page of cnbc. sell all the premium you can at that point.

if it feels uncomfortable at the time it usually is the appropriate strategy. if it feels too easy time to go flat.
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good insight- thnx, will take all that you can throw my way!

Do simply look at VIX or prefer ATM staddle and maybe blend a couple just OTM call/puts to get IV .......

and historical is a given I think .... you can chart that I recall
 
Quote from optionbull:

Hello looking for like traders that sell option premium and are aware of the risks etc

Looking to start account doing this knowing all that I can going in
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have you looked at put masters threads/posts?
 
Quote from riskaddict:

since there have been so many threads about this over the last month I'm pretty sure vol is bound to pick up.
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I dont know, you know markets, cant ever be sure, it could go on another 5 years, I think the markets are going to higher for a long while, its just a function of the worthless dollar because of all the printing, not because the econ. or anything is all that great.... sort of a weird bull market I guess....
 
I only buy cheap premium, naturally that forces me to be right on direction and somewhat (not dramatically) fast on time while having a good target idea, but that's ok that's what price action is for.

If you know what you are doing, your risk is fixed and limited, and the accuracy does not have to be bad, problem is people don't know what they are doing and that's when they have the need to be creative, to somehow make up for the lack of market structure education.
 
Quote from Daring:

I only buy cheap premium, naturally that forces me to be right on direction and somewhat (not dramatically) fast on time while having a good target idea, but that's ok that's what price action is for.

If you know what you are doing, your risk is fixed and limited, and the accuracy does not have to be bad, problem is people don't know what they are doing and that's when they have the need to be creative, to somehow make up for the lack of market structure education.
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meaning you buy option instead o future ? I do that however researching anothe strat., why I started this thread.

Yes, I think you are refer to buying "vol " ? Do you buy deep OTM or ATM , and both calls or puts pending bias ?
 
Quote from optionbull:

meaning you buy option instead o future ? I do that however researching anothe strat., why I started this thread.

Yes, I think you are refer to buying "vol " ? Do you buy deep OTM or ATM , and both calls or puts pending bias ?
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Somewhat OTM, not deep, typically 2 to 5 weeks til expiry depending when OEX comes, choosing a strike that will get them ITM, then I dump them.

Yes, only one or the other (calls or puts).
 
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