I am new

I know 4RE (ET member) has been trading options for a long time now, maybe you can PM him or ask Qs in his journal "S/R Journal". All the best.
 
Thanks everyone. Good advice all.

Just for the record though, I am not doing anything naked. I am not a gambler. Even though I am somewhat surprised to see there are gamblers that post here. I so far have done straddles, credit spreads, some covered calls, calender spreads, vertical spreads and the like, married puts that kind of thing. And I don't put a lot of money on each trade.

Further I am using Optionsvue to evaluate iv before placing a trade. I just got it and it took me about 24 hours to figure it out. I need a model not to make a decision for me, but I don't have the time to write my own spreadsheet in VBA. I have a day job and don't have time. I am on lunch now. But, I need to know what the current voloatilies are and the impact on my trading decisions. I need to use some graphical interface and I don't have the time to develop my own.

Thanks again.
 
Quote from JSHINV:

Thanks everyone. Good advice all.
I am somewhat surprised to see there are gamblers that post here.
Just for the record though, I am not doing anything naked. so far have done some covered calls ...
Thanks again.
More...
That's funny :D .
Btw what's your question?
daddy's boy
 
JSHINV
Ok, covered call is synthetic equivalent of naked put, just in case you weren't aware. So, cc's aren't a good strategy to use if you are trying to avoid "naked" positions.
daddy's boy
 
Quote from daddy'sboy:

JSHINV
Ok, covered call is synthetic equivalent of naked put, just in case you weren't aware. So, cc's aren't a good strategy to use if you are trying to avoid "naked" positions.
daddy's boy
More...

I usually buy an out of the money put to cover it. But, I am learning this approach is not a strategy I like and really not a good strategy at all when compared to equivalent alternatives.
 
Like I said in my first post, I usually avoid these public boards. I am going back to my past practice. I do appreciate the constructive comments from the other posters, however.

Goodbye.

"JSHINV
Ok, covered call is synthetic equivalent of naked put, just in case you weren't aware. So, cc's aren't a good strategy to use if you are trying to avoid "naked" positions.
daddy's boy"
--------------------------------------------------------------------------------



"I usually buy an out of the money put to cover it. But, I am learning this approach is not a strategy I like and really not a good strategy at all when compared to equivalent alternatives."
 
Quote from JSHINV:

Like I said in my first post, I usually avoid these public boards. I am going back to my past practice. I do appreciate the constructive comments from the other posters, however.

Goodbye.

"JSHINV
Ok, covered call is synthetic equivalent of naked put, just in case you weren't aware. So, cc's aren't a good strategy to use if you are trying to avoid "naked" positions.
daddy's boy"
--------------------------------------------------------------------------------



"I usually buy an out of the money put to cover it. But, I am learning this approach is not a strategy I like and really not a good strategy at all when compared to equivalent alternatives."
More...

JSHINV,

Sounds like you didn't like daddy'sboy comment about a covered call being the same as a naked put. Well, whether you like it or not this is the case, the two are identical.

So anyone who says he/she doesn't like naked short option positions, but is ok with covered calls is fooling him/herself.
 
Quote from JSHINV:

Like I said in my first post, I usually avoid these public boards. I am going back to my past practice. I do appreciate the constructive comments from the other posters, however.

Goodbye.

"JSHINV
Ok, covered call is synthetic equivalent of naked put, just in case you weren't aware. So, cc's aren't a good strategy to use if you are trying to avoid "naked" positions.
daddy's boy"
--------------------------------------------------------------------------------



"I usually buy an out of the money put to cover it. But, I am learning this approach is not a strategy I like and really not a good strategy at all when compared to equivalent alternatives."
More...

Did that comment really offend you that much? I think you need to get some balls and some thicker skin.
 
Quote from MTE:

JSHINV,

Sounds like you didn't like daddy'sboy comment about a covered call being the same as a naked put. Well, whether you like it or not this is the case, the two are identical.

So anyone who says he/she doesn't like naked short option positions, but is ok with covered calls is fooling him/herself.
More...

I don't disagree with your point. That is why I would buy offsetting put(s) when doing a buy write. But, as I say, I have learned there are better alternatives than this. Also, if the stock takes a nosedive, can't you buy back the call at a lower price and then write another call? Yes, I know you can. But, this is a bad strategy also. I understand this too. I have done covered calls and I don't much care for them, pretty much for the reasons you mention.

My primary goal is to learn to recognize when options are undervalued and do something like straddles or some other strategy. I am new, hence the title of my post. I do this part time. In three or four years, I will be proficient or I will be out well before.

I am going to continue to visit this board a lot. Just not post hardly at all. I am new, as is the title of my post. I can learn a lot from reading these posts. But, it will be a while before I have really something to add. I do like the one poster's comments about being creative. That is the point I want to get to.

I will become proficient at this. But, I am smart and successful enough to know, any gain requires work, work and more work.
 
You must log in or register to reply here.
Back
Top