How many options strategies should you realistically master?

newwurldmn said:
INFINITE GAMMA
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OK, I've just got to ask. :confused:

Since -P = S - C, they should be equivalent - but I know that there are some marginal differences prior to expiration (e.g., due to the vol smirk.) Is this about dynamic hedging - maybe on the call side prior to expiration?
 
So you think the buy writers cleaned up while the naked put sellers went belly up?
Im guessing you are saying conversions are mispriced(ignoring interest rate risk)?

Short puts are a riskier trade than covered calls/buy writes? Far more risk with a short put?







TheDawn said:
Nothing is cash secured if you are doing any naked shorting of options.
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taowave said:
So you think the buy writers cleaned up while the naked put sellers went belly up?
Im guessing you are saying conversions are mispriced(ignoring interest rate risk)?

Short puts are a riskier trade than covered calls/buy writes? Far more risk with a short put?
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Buy writer??!! What's buy writers?? LOL And the conversions??? What conversions are you talking about?? Can you stop being so cryptic like your options idol? LOL

Well from a payoff diagram, the short put would have the same payoff pattern as the covered call, yes so the risk is the same. Ah, nice try with the trick question. LOL But what I am saying is short put, even cash-secured is still risky because it's naked and not covered. At least with covered call, the short call is covered.
 
TheDawn said:
Buy writer??!! What's buy writers?? LOL And the conversions??? What conversions are you talking about?? Can you stop being so cryptic like your options idol? LOL

Well from a payoff diagram, the short put would have the same payoff pattern as the covered call, yes so the risk is the same. Ah, nice try with the trick question. LOL But what I am saying is short put, even cash-secured is still risky because it's naked and not covered. At least with covered call, the short call is covered.
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And the shares? Are they covered too to the downside?
 
Please tell me you arent equating risk with having "the funds" in the account..

You don't know what a conversion is???

WTF


TheDawn said:
Buy writer??!! What's buy writers?? LOL And the conversions??? What conversions are you talking about?? Can you stop being so cryptic like your options idol? LOL

Well from a payoff diagram, the short put would have the same payoff pattern as the covered call, yes so the risk is the same. Ah, nice try with the trick question. LOL But what I am saying is short put, even cash-secured is still risky because it's naked and not covered. At least with covered call, the short call is covered.
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taowave said:
Please tell me you arent equating risk with having "the funds" in the account..

You don't know what a conversion is???

WTF
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No I am an amateur retail trader, remember? I don't understand those "institution" talk. LOL. What's conversion? How does it apply to options? Please teach us, Professor Taowave. LOL
 
taowave said:
Dawn, you really don't know what you don't know...
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Well, this explains the replies with all the blank space in them. I blocked "The Dawn" ages ago for rampant, unrepentant cluelessness - and I'm guessing he's at it again. Looks like you folks are being quite well entertained... :)
 
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