Are naked puts really this safe????

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).

-------------------------------------------------------------------------------

I am going to sell 25 to 50 SXYIM or SXYIN (SPX 1365 or 1370 calls) ; may sell in 2 batches if I can't get a good fill on 50.


I will short SPU8 for a day trade - looking for overbot on the
5-m.

Will update log.
--------------------------------------------------------------------------------


Except for daytrading SPU8 (scalping a point or two on 3-lot trades) I haven't added to the SPTUJ position.
Looking for a short SPU8 daytrade around 1282 OB.


I am bidding on SPX 1125 put - yeah, I want to hedge and release margin.
Still want to sell the OTM calls in the 1365 to 1380 range.
===========================================

Looking to buy 25 or 50 Sep 1125 puts at about 0.35 or better; TOS bid/ask is now 0.35/0.50
I hope I can get filled on this nice little rally we are having today.

If filled, I will consider selling Sep calls, strikes 1370 to 1390.

----------------------------------------------------------------------------

Bought 25 SPX 1125 puts at 0.45

Traded 3 SPU8 - see chart
 

Attachments

Quote from optioncoach:

You want proof here it is.

The risk reward profile for an Iron Condor can be achieved by entering a long Condor for a net debit with just calls or puts and an Iron ButterFly can be replicated using a net debit long butterfly. An OTM put spread can be done using a deep ITM call spread for a net debit.

So just take anyone successfully using Iron Condors or Iron Flys and do them as net debits and there is your proof someone can make money with net debit spreads.

Take my Credit Spread Journal and look at each trade as its synthetic debit spread and you have your proof in the pudding.

So I just proved someone can make money trading net debits. It was my preference to do the spreads as net credits but my FLYs are either net debits through calls or puts, or net credits as legged into Iron Condors.

You seem to know a thing or two about options so not sure why you make such a big distinction about net long or net short premium unless you are only limiting net short premium to naked option sellers which is very limited. If I traded a fund and made money soley on Iron Butterflies would you argue that proves only ner short premium can make money?

Also this is your bold post:

"the concern has never been that you recommend to beginners to sell options, the concern was (and still is), as evidenced by your latest post, what you do for your account is what bothers you if someone else were to do it. how could you reconcile these facts?"

the reconciliation is easy for anyone with a brain. What bothers me is beginners making naked puts sound like easy money. regardles of whether I have ever traded them, it makes sense to hate the ignorance of risk espoused by beginners how short puts is easy money. There is nothing to reconcile. It goes back to my previous post that just because experts trade naked options does not mean they would recommend them to beginners.

Just let it rest because you are trying to pick a fight where none exists. The only thing I can see you trying to say is that if I trade short puts I should not comment that beginners shoudl avoid them.
More...

i will answer just one point, and leave the rest to sleep/die, which is: by NET LONG PREMIUM and NET SHORT PREMIUM, we do not mean debit vs. credit. We rather mean the net volatility premium of overall position, which is different than credit vs. debit implementations. credit vs. debit implementations of a given position are same (with exception of interest rate risk (rho) and assignment risk/opportunity).
 
Naked short gamma simply refers to net-short exposure in contract-terms. It's pointless to argue that a long fly, et al, is a bugaboo simply because a neutral fly is short gamma. A fly can be long or short gamma depending on locale.

A 3/20 long fly [$3 debit/$20 strike differential] carries less risk than a $6 atm call.
 
do you (you=all/any readers) think traders need to use their brains in trading? options is one area where they may be useful. however in trading the underlying, i am not sure whether brains are needed/useful. any thoughts?
 
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).

-------------------------------------------------------------------------------

I am going to sell 25 to 50 SXYIM or SXYIN (SPX 1365 or 1370 calls) ; may sell in 2 batches if I can't get a good fill on 50.


I will short SPU8 for a day trade - looking for overbot on the
5-m.

Will update log.
--------------------------------------------------------------------------------


Except for daytrading SPU8 (scalping a point or two on 3-lot trades) I haven't added to the SPTUJ position.
Looking for a short SPU8 daytrade around 1282 OB.


I am bidding on SPX 1125 put - yeah, I want to hedge and release margin.
Still want to sell the OTM calls in the 1365 to 1380 range.
===========================================

Looking to buy 25 or 50 Sep 1125 puts at about 0.35 or better; TOS bid/ask is now 0.35/0.50
I hope I can get filled on this nice little rally we are having today.

If filled, I will consider selling Sep calls, strikes 1370 to 1390.

----------------------------------------------------------------------------

Bought 25 SPX 1125 puts at 0.45

Traded 3 SPU8 - see chart
More...


See attached chart for SPU8 trading today.
Short 3 SPU8

Unchanged options positions.
 
Quote from Kevin Schmit:

The difference is that short gamma can be deadly.

I can't remember a blowup due to buying options.
More...
Actually, it can happen. Guy on this board was long a bunch of (previously) OTM GOOG calls, on a small acnt. GOOG gapped up at close on expiry and he was auto-exercised.

Of course GOOG dropped Monday when he was liquidated. He got smoked and ended with a neg acnt balance. IB sucked dry his other acnts to pay.

Yeah he was careless, but options are not for newbs - long, or short...
 
Quote from Jahajee:

See attached chart for SPU8 trading today.
Short 3 SPU8

Unchanged options positions.
More...


Closed short SPU8 position - sold @ 1237, bot @ 1229.2

Will consider new SPU8 positions after Unemployment report
Will also look to buy OCT SPX calls
 
Quote from Jahajee:

Closed short SPU8 position - sold @ 1237, bot @ 1229.2

Will consider new SPU8 positions after Unemployment report
Will also look to buy OCT SPX calls
More...

Resold 3 SPU8 @ 1227.8
 
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