Gotta love ZERO RISK in the SP500 = $$$

noddyboy said:
Doing nothing -- words of wisdom.
But I don't see why selling puts make any sense if you think the market will be down by Friday. It seems risky with Greece too.
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I "Think" market will be down but I don't want to bet my farm on it so I go and sell PUTs on stocks and futures that because of market fear pays good dividend. For example I believe gold will be up (not $2000 per oz) but I see it is going down now. What I do I sell GLD next week PUT for 110. If it goes up, I collect the premium and if it goes below 110, I will own GLD at 110 and then the next week I will sell GLD 110 or 110.5 Call. I don't do that on junk stocks.
 
Autodidact said:
Safer and selling OTM puts is imo an OXYMORON unless you have some sort of hedge, but you did not mention it.
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Ok so you believe SPY will go to zero. Then you can go to a coffeeshop and just read WSJ and enjoy and do not make your hands dirty and feel smart. Everything has a risk.
 
Som bitch..
 

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Maybe a good trade would be to sell naked Call GLD 112.5 expiring tomorrow at 0.11. My trade ideas make little but probabilities are high.
 
hajimow said:
Ok so you believe SPY will go to zero. Then you can go to a coffeeshop and just read WSJ and enjoy and do not make your hands dirty and feel smart. Everything has a risk.
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What sort of argument is that?

Spy does not need to go to 0 for your 5% otm short naked puts to explode in premium.
 
hajimow said:
Maybe a good trade would be to sell naked Call GLD 112.5 expiring tomorrow at 0.11. My trade ideas make little but probabilities are high.
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This is precisely how amateurs think, high probability to counter a weak psych, smallish reward because they just want to be right.

You are showing your inexperience in the field.
 
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