someone correct me if I'm wrong please but the title to this thread doesn't even make sense to me. There is no such thing as "buying" a naked call..... 
Buying Naked Calls
- Thread starter Bushwacked9
- Start date
Bush mistitled the post to "Buying Naked Puts". Then, realizing the mistake in the title, it was later corrected and the title changed by a mod ...someone correct me if I'm wrong please but the title to this thread doesn't even make sense to me. There is no such thing as "buying" a naked call.....
Baron is not in the habit of banning people for being incorrect. Somebody who types information that a user may perceive to be "misleading" due to the author's lack of knowledge on the subject is not the same as someone who is forcing an idea down someone else's throat with the INTENT to deceive them. And even if it were, that would not be a reason for a ban per se, because it does not violate any usual TOS. Does it here? I don't think so, unless the user gets lots of reports on the post. Case-by-case, you know?
You have to remember, when participating with an online BBS, caveat emptor. Do your due diligence. If you do not, you deserve to be crushed by the stupid. This has been the way of things for 40 years now with online message boards.
Sorry you are late to the party on how the online world's convention works, and I hate to seem harsh on this. But my lord, with all the information available to folks, I cannot believe that this idea of "banning" someone for posting something that turns out to be incorrect is credulous. If you want to read about options and cannot find any answers in your first few days online, then don't complain about it. Go to your local library and check out a book on it. You know, a real, physical, book.
Drop the Kindle, take the Dewey decimal cards.
The above is exactly why I start out, as I do.
As I have said ... about a billion times ... in fifteen different threads ...
You do not give every nuance to someone who is new to a subject. This is Teaching and Rhetoric 101.
I've said it a billion times before, and am saying it again.
And given Bush's statements above? Namely ...
Which I said would happen.
Point raVar.
Again.
Is exactly why I approach the subject the way that I do. Always start new people off with Spreads. Once they see the drawbacks of spreads, move them on to more efficiently harvesting theta on longer data options maybe on IC's. Once they see the problem with IC's, then maybe move them on to Strangles. Once they see the problem of doing so in low IV environments, then move them on to being selective for selling premium, and strats for low IV environments. All dependent on their capital of course. Once they see the drawbacks of equity options if they are on the Indices, move them on to Futures.
But no ... you have a bunch of keyboard commandos, wanting to jump to advanced topics ... and what I said would happen.
Happened.
It's only when a student runs into a problem ... can you move them slowly onto a solution. But only once they have the basics. Which ... as I've said a million times before ... when you teach anyone anything ... you don't give them the most accurate information. Thus, why we were taught in 5th grade that Proton's and Neutrons were the smallest form of matter, when they know better when they are teaching it. You don't give Gluon's and X-Particle's to a 5th grader.
I haven't really seen his posts? But I suspect that dest is either
A) A "Davian", and flat out lying for the sake of his ego. Very easy to do in today's day and age. And again, like Davian? What made that situations o weird is he talked about trades in real time and actually knew the information. The ego is a hell of a drug though. Heck, Davian got all the way up to getting money from the Carters (Yes ... those Carters). Which is not improbable, given every single one of my disclaimers is ignored, so he can prove how "smart he is".
Not really surprising either. A guy comes on with a completely different approach, who cares nothing for Forum egos. With a bunch of guys that have spent a lot of time building their egos up ... on a Forum no less. So ... yeah ...
B) Is not lying, but is one of these weird ... weird types I have run across ... that is very specific to Options Traders. Ran across another guy like this. His world view of risk, didn't really understand math advantage over iterations with low edge games. Much less, the math advantage of combining two low-edge games. Which anyone even remotely close to Quantitative Strategy Architecture realizes is stupid. He had to have it the single best way. Usually such fail at outrights trading. Then they find Options, and the obvious benefits. They get good at options. And since their usual failures drove them in this direction? They'll rail on and on against outrights directional trading, and anything and everything but their one way ... which of course, feeds the aforementioned ego.
Despite some of the most succesful, and longest lasting Programs for managed money today, is with directional outrights trading.
Only guy I ever saw that didn't fall into that ego trap? I don't know him, just watched him from afar. But he wrote a book years back on Options, and later, THE Options software for T-1 Institutions (Silexx) that was eventually bought out. I don't know him personally, but watching him from afar always struck me as a very humble guy, and open to new ways of thinking; and specifically mentions there are many ways to skin the cat ...
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I don't think the pound convention works here. Isn't that a Twitter thing? Here they use ampersands.
Raver,why on earth would you start a beginner with spreads??
Harvesting theta on longer dated options???? WTF???
And this beauty is beyond comprehension
"Once they see the drawbacks of equity options if they are on the Indices, move them on to Futures."
Equity options on the indicies???
In what parralel universe does that exist??
That's some funky shit you are passing around
Harvesting theta on longer dated options???? WTF???
And this beauty is beyond comprehension
"Once they see the drawbacks of equity options if they are on the Indices, move them on to Futures."
Equity options on the indicies???
In what parralel universe does that exist??
That's some funky shit you are passing around
I be a bit confused also...Isn't an equity index option, a futures option?
Wait, no...I think I know this...An option on an equity index is like SPY or something? Or is that SPX?
1) Yes, again rhetoric 101. In my experience, newcomers (which, is the topic) understand spreads before anything else. Don't ask me why. As they said in "Dances with Wolves" ... I don't know why the Buffalo run that way, they just seem to understand spreads easier, and tend to gravitate towards them.
Try explaining UR / Naked positions to new folks. They tend to vomit in their mouth a little bit when first exposed to the idea.
2) I'm sorry you don't understand the concept of harvesting theta. Pretty simple really, since you get a +1 (sorta ... but then not really ... but simple way to illustrate it) each day, and you can design more advanced option strategies that are based around this, especially if working with other non-correlated strategies. But in any game where an edge can be garned, a +1 per day, is an instant edge to be exploited. In some pretty interesting ways. Maybe if you develop some contacts in with some advanced option traders, they can help you out?
3) Well, I'm not sure if you knew this, but Equities (Equities, if you did not know, is another name for Stocks when dealing with multi-asset classes) ( https://www.investopedia.com/terms/e/equitymarket.asp ) , have options on them. Stocks like AAPL, NFLX, etc. Then there is something called the INDEX of Equities. You may have heard some of them. SPY. QQQ. DIA. Etc. Those are "equity options, on the indices".
Then again, I do admit that I deal in multi-asset classes. Which makes me a bit of a hybrid, and this is how a lot of guys that do what I do, refer to Stocks. Just refer to them all as "equities". The "histrionic Equities markets" Lingual differences when you deal in different asset classes definitely exist. Try hanging out exclusively with some of the old Floor pit traders. Even with the pits gone ... those guys have a language all of their own, down to this day. Heck, I've seen some of them still communicate over distance with the old hand signals. LOL
Sometimes, when ones are exposed to someone from the Professional world, they get a bit lost as the terminology is a little different than what retail traders are used to. So I admit the fault could somewhat be mine, as I forget retail traders lingo from time to time. Just a side-effect of the guys I run with ...
But anyways ... yes ... then, you might be able to move them to futures ... because as another guy around these parts (forget his name, has yellow in his avatar ... was attempting to correct dest with some university papers, but dests ego wouldn't accept it) correctly stated earlier that there are tax advantages, by moving to futures, as well as efficiency of capital. That is, if they have the capital for Futures. Also, you can instantly increase both your Probability of Profit. Actually, that's a poor way to phrase the advantage. Since the size of the contracts is greater in futures, you can play with more strikes with greater credit's further up and down the ladder, allowing for flexibility.
Let me know if there is anything else you need help with.
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