How to trade volatility?

[silver182]

Dude, I am clairvoyant. I will give you a free glimpse!

You're going to continue to short these puts and then lose it all within sight of tax-day. Not only will your hobo-ass be broke but liable for the prior year's capgains.

Just picture me astral projecting over your hovel.

"OLH" ...can't happen... estimated taxes.. "Uncle Sam not stupid"...crystal balls don't work....don't "you wished they did"...hey "clairvoyant" sounds like you've been down this road sorry about that.
New insight for you "OLH"
Broke..."Silver182" not even if the price of Oil goes down to 10 dollar a barrel)..

 

[destriero]

"OLH" ...can't happen... estimated taxes.. "Uncle Sam not stupid"...crystal balls don't work....don't "you wished they did"...hey "clairvoyant" sounds like you've been down this road sorry about that.
New insight for you "OLH"
Broke..."Silver182" not even if the price of Oil goes down to 10 dollar a barrel)..

Nope! I don't sell naked puts!

You're not paying quarterly. Not how it works, Bro!

You make a few bucks in 2018. You go bust in 2019. Liable for 2018 taxes which you cannot pay in 2019.

 

[silver182]

Nope! I don't sell naked puts!
"OLH" no wonder your not making any money.

You're not paying quarterly. Not how it works, Bro!
Tell Uncle Sam that....just got through writing him a $18,000 1/4ly estimated for 2018....still going to come up short for this year...you need a little schooling on taxes..

You make a few bucks in 2018. You go bust in 2019. Liable for 2018 taxes which you cannot pay in 2019.

OLH...sounds like you've been down these "broke" roads before..sorry about that. Tell me how the tax system works when you get a little older...

 

[destriero]

OLH...sounds like you've been down these "broke" roads before..sorry about that. Tell me how the tax system works when you get a little older...

I thought that I was clear. You can boldface it all you like. I don't run a haircut. I don't sell naked puts... you do.

 

[silver182]

I thought that I was clear. You can boldface it all you like. I don't run a haircut. I don't sell naked puts... you do.

OLH...you also need to learn to read & comprehend.."buy them books send them to school" & this is what we get...

 

[destriero]

OLH...you also need to learn to read & comprehend.."buy them books send them to school" & this is what we get...

lol Silver is the guy who canlt define a synthetic call. You don’t pay quarterly. You do short naked puts hence the haircut.

 

[silver182]

OLH..."of little help"...is your new name..little if anything you say has any relationship to what I have written....a "haircut" means nothing to me...."learn to read write & comprehend English"..until then you get NO response from me. "good luck..have a great life"

 

[ChimpTrader]

This is what I do...again, & again & again...I make money very consistently selling naked Puts...watch & trade only what's trending up when the trend is up. We are in one hell of a bull market but like markets do up's & down's are included!

Example you might try: tomorrow...sell APPL 217.50 puts.. expiration date 28th..."near" the money but below trading price! Use volatility to your advantage when selling. Option prices with APPL & SPY move quickly up & down in-tra-day.. and don't have wide spreads..don't use a Market order!..limit orders work to your advantage trading options...you would be surprised how often you can get a fill to your advantage...by placing an waiting a few minutes. I do this by selling a few units throughout the week. I would suggest you never sell any more units than you can cover..with cash!!..that way what you are trading takes a turn south getting close to Friday and you want to let the shares be Put to you. Next week should be better. You can also use this method trading SPY...it has 3 expiration days each week..be careful..start small & see how it works for you. I have found it's a cash cow...Especially the more margin value your account has.

<<Use volatility to your advantage when selling>>
Is gauging IV% to its Percentile or Rank or comparing it to its Hist. Vol.% is the end of the world? What else can be done in order to perceive volatility better?

What position is equivalent to long 100 shares and long one put?

a) a toaster

b) long call

c) Brett Kavanaugh

d) Herpes

9) all of the above

He he he.... Hang on a minute there mate!

How come long 100 shares and long one put = long call?
My understanding is as below and if you prove me wrong, then that shall be a new learning for me. Thanks anyways....

1 option (be it call or put) = 100 shares. right?

Assuming that lets examine the L.H.S. of the equation:
As,
Long 100 shares = Long 1 Call, right?
Long 1 put = Short 100 Shares, right?
So,
Long 100 shares and Long 1 put = Long 1 Call and Short 100 Shares, right?
or,
Long 100 shares and Long 1 put = Long 100 Shares and Short 100 Shares, right?

Now, let us assume the R.H.S. of the equation:
1 Long Call...hmm... that's equal to Long 100 shares, right?

Hence, L.H.S. is not equal to R.H.S.

 

[destriero]

<<Use volatility to your advantage when selling>>
Is gauging IV% to its Percentile or Rank or comparing it to its Hist. Vol.% is the end of the world? What else can be done in order to perceive volatility better?



He he he.... Hang on a minute there mate!

How come long 100 shares and long one put = long call?
My understanding is as below and if you prove me wrong, then that shall be a new learning for me. Thanks anyways....

1 option (be it call or put) = 100 shares. right?

Assuming that lets examine the L.H.S. of the equation:
As,
Long 100 shares = Long 1 Call, right?
Long 1 put = Short 100 Shares, right?
So,
Long 100 shares and Long 1 put = Long 1 Call and Short 100 Shares, right?
or,
Long 100 shares and Long 1 put = Long 100 Shares and Short 100 Shares, right?

Now, let us assume the R.H.S. of the equation:
1 Long Call...hmm... that's equal to Long 100 shares, right?

Hence, L.H.S. is not equal to R.H.S.

Don't pluralize anyway.

 

[samuel11]

<<Use volatility to your advantage when selling>>
Is gauging IV% to its Percentile or Rank or comparing it to its Hist. Vol.% is the end of the world? What else can be done in order to perceive volatility better?



He he he.... Hang on a minute there mate!

How come long 100 shares and long one put = long call?
My understanding is as below and if you prove me wrong, then that shall be a new learning for me. Thanks anyways....

1 option (be it call or put) = 100 shares. right?

Assuming that lets examine the L.H.S. of the equation:
As,
Long 100 shares = Long 1 Call, right?
Long 1 put = Short 100 Shares, right?
So,
Long 100 shares and Long 1 put = Long 1 Call and Short 100 Shares, right?
or,
Long 100 shares and Long 1 put = Long 100 Shares and Short 100 Shares, right?

Now, let us assume the R.H.S. of the equation:
1 Long Call...hmm... that's equal to Long 100 shares, right?

Hence, L.H.S. is not equal to R.H.S.

omg

Long 100 shares = Long 1 Call, right?
Long 1 put = Short 100 Shares, right?

No, it's not right.

Long 1 call = long 100 shares + long 1 put.

Here are the payoffs drawn for you:

http://www.theoptionsguide.com/long-call.aspx
http://www.theoptionsguide.com/protective-put.aspx