Are naked puts really this safe????

[piezoe]

Quote from dmo:

Isn't it silly to argue blindly about the appropriateness of buying or selling premium in a vacuum - without factoring in the cost of that premium?

When considering whether to buy something, wouldn't you want to know the price? Wouldn't that be a consideration? If somebody wanted to buy something from you, wouldn't the price he was willing to pay be a factor in your decision?

When complacency is way overdone and premium is at historic lows, it's probably a good buy. When panic is way overdone and premium is selling at historic highs (or at least statistically unusual highs), it's probably a good sale. In between, it's a crapshoot.

If I'm going to shoot craps, I'd just as soon go to Vegas and at least get compensated for my losses with free drinks served by busty waitresses.

Thank you, dmo. Nicely said! Well Put, so to speak.. It's what you buy or sell and at what price, and at what leverage that makes the difference.

 

[hlpsg]

To Jahajee,
Not sure if you missed reading my question to you above. You were asking for an intelligent discussion and I posted what I felt were reasonable questions on your strategy above.

Would you care to comment?

 

[timbo]

Quote from hlpsg:

To Jahajee,
Not sure if you missed reading my question to you above. You were asking for an intelligent discussion and I posted what I felt were reasonable questions on your strategy above.

Would you care to comment?

Is it difficult being a whore on a pirate ship?

 

[Jahajee]

Quote from Jahajee:

Sell 50 SPTUJ @1.25 (September SPX 1150 puts)

Sell Stop SPU8 @1200

Will consider any of the the following, depending on market conditions:
- adjust sell stop SPU8 higher depending on possible rate of decline of SPX.
- sell more SPX naked puts if market goes above 1300
- sell SPX 1125 or 1075 puts if SPX approaches 1225
- buy back SPX 1150 puts & sell SPX 1225 puts if SPX moves up, a big range up day, to say 1350

Looking to sell CALLS in the strike zone of 1380 to 1420 (SPX).

 

[atticus]

Quote from Jahajee:

Looking to sell CALLS in the strike zone of 1380 to 1420 (SPX).

So much low-hanging fruit, eh? You realize that your short put is f#cked, no? 1400?

 

[Jahajee]

Quote from atticus:

So much low-hanging fruit, eh? You realize that your short put is f#cked, no?

Be patient my friend. You're getting way too excited, after a mere 20 points SPX decline.

As per my post on the opening trade, I am also looking at selling more puts.

Remember this one word: Probabilities.

 

[makloda]

Quote from Jahajee:
Remember this one word: Probabilities.

Remember this one word: Blowup!

 

[Jahajee]

Quote from makloda:

Remember this one word: Blowup!

You're just too kind. Thank you.

 

[newguy05]

Quote from Jahajee:

Be patient my friend. You're getting way too excited, after a mere 20 points SPX decline.

As per my post on the opening trade, I am also looking at selling more puts.

Remember this one word: Probabilities.

Why do you continue with this sillyness. You realize by writing such a large position on low premium, you will be completely fucked if the position makes a big move against you with almost no room for recovery. It's the very definition of picking up pennies in front of a steamroller.

You can wag your **** all your want, but read what dmo said, roll the dice 6 times, you make $1 on 5 rolls, and lose $1000 on the 6th rolls. There's your probability.....

 

[atticus]

C'mon, what's a 50% loss? It's not a loss until it's booked!