collecting premium / cashing out

[iceman1]

konviction -- you getting rich on those naked puts, yet?!!

try it with real money and see how long you can take the heat... and hold. But like you said: that's the only way to get rich!! lol

 

[john33]

Quote from iceman1:


(btw: I am short the 405 call and 405 put - have a positive expectancy whether AAPl hits -0- or 1000 this Friday) [/B]

huh?

 

[Eliot Hosewater]

Quote from konviction:

Been reading "get rich with options" and I'm sold on the idea that selling is much more successful and profitable that buying.

But I have a question. If I collect the premium from the buyer upfront, why not just turn around and close the trade out and run with the money. Obviously I must be missing something here, as this wouldn't be fair to buyers.

I only read the first page so far, but you have to ask yourself what does "close the trade out" mean.

 

[JJacksET4]

Quote from konviction:

sold November aapl 405 puts at 8.65

Just to point it out, with one day remaining, this now is priced at ~:
$2690/$2845

JJacksET4

 

[ForexForex]

Quote from konviction:

But I have a question. If I collect the premium from the buyer upfront, why not just turn around and close the trade out and run with the money. Obviously I must be missing something here, as this wouldn't be fair to buyers.