ideas for profit taking

[murray t turtle]

pro traders sell options not buy them...

%%
Maybe true 80%+/ of the time; + one of the top TX milionaires in TX, did real, real well buying up cheap oil options[ lease].Some commercial s buy REALTY options/Trammel Crow................... But i never did; just pay cash or bank finance

 

[MarkBrown]

Did not hear you say that in 2008, 2009 or the many other years of large vol spikes. Oh right, that's when you created new user ids and had to fund your depleted accounts. Joke aside, the above applies to probably 95% or more perpetual option sellers. Point being is that options are most of the times correctly priced meaning that you are selling insurance and most insurance policies are invoked at some point. Unless you write millions of policies like a large insurance firm and have large and deep long term investments you most likely go belly up on large vol spikes.

sincerely i say this > if you have deep pockets and know what you're doing you can never lose selling naked options on the right optionable indexes. i worked for a conglomerate of trading firms who were the largest option sellers around for many decades.

we continually were short sellers of the near contract, if we hit position limits we rolled into proxy markets to make up the difference. for over twenty years we never lost a month and never failed to out perform the sp index all while churning (many thousands) of round turns per million.

the volatility spikes that killed many a seller were our bread and butter signal to sell. to make mega bucks you have to embrace the risk not avoid it. people looking for low to no risk trading are just prolonging going broke.

it's the phd's, bullshitters, newly formed miracle funds that blow up selling options because they have never lived through a train wreck and they never had the deep pockets to back a position ten times larger margin than when they put the trade on in the first place.

 

[taowave]

No chance you were continually short vol sellers at position limits and never had a losing month.

If you are at position limit,how exactly do you roll into a position 10x larger?

Im assuming you traded away from the exchange

sincerely i say this > if you have deep pockets and know what you're doing you can never lose selling naked options on the right optionable indexes. i worked for a conglomerate of trading firms who were the largest option sellers around for many decades.

we continually were short sellers of the near contract, if we hit position limits we rolled into proxy markets to make up the difference. for over twenty years we never lost a month and never failed to out perform the sp index all while churning (many thousands) of round turns per million.

the volatility spikes that killed many a seller were our bread and butter signal to sell. to make mega bucks you have to embrace the risk not avoid it. people looking for low to no risk trading are just prolonging going broke.

it's the phd's, bullshitters, newly formed miracle funds that blow up selling options because they have never lived through a train wreck and they never had the deep pockets to back a position ten times larger margin than when they put the trade on in the first place.

 

[destriero]

No chance you were continually short vol sellers at position limits and never had a losing month.

If you are at position limit,how exactly do you roll into a position 10x larger?

Im assuming you traded away from the exchange

Position limits.

If any of you saw his Zillow in TX you'd all put him on ignore.

 

[ironchef]

sincerely i say this > if you have deep pockets and know what you're doing you can never lose selling naked options on the right optionable indexes. i worked for a conglomerate of trading firms who were the largest option sellers around for many decades.

we continually were short sellers of the near contract, if we hit position limits we rolled into proxy markets to make up the difference. for over twenty years we never lost a month and never failed to out perform the sp index all while churning (many thousands) of round turns per million.

the volatility spikes that killed many a seller were our bread and butter signal to sell. to make mega bucks you have to embrace the risk not avoid it. people looking for low to no risk trading are just prolonging going broke.

it's the phd's, bullshitters, newly formed miracle funds that blow up selling options because they have never lived through a train wreck and they never had the deep pockets to back a position ten times larger margin than when they put the trade on in the first place.

But sometimes deep pocket professionals can get in trouble going short: LTCM

 

[MarkBrown]

No chance you were continually short vol sellers at position limits and never had a losing month.
If you are at position limit,how exactly do you roll into a position 10x larger?
Im assuming you traded away from the exchange

i see i was unclear > my comment about 10x the margin was that if we had a million dollars of margin value trades on we had 10x that in reserve capital at all times. when you have enough money to never be caught on a margin call and still not effect new positions you can not lose money. the principle of the firm i worked was short the market from the 80's until he passed a few years back. somebody is selling those options it was always us.

 

[MarkBrown]

But sometimes deep pocket professionals can get in trouble going short: LTCM

they were amateurs with great marketing one of our clients jumped over to them when they started and we saw that fall apart. ltcm was ill conceived from the start they had no big money experience at all. so to hold them up as to big to fail or too smart to fail etc. is just marketing.

 

[destriero]

i see i was unclear > my comment about 10x the margin was that if we had a million dollars of margin value trades on we had 10x that in reserve capital at all times. when you have enough money to never be caught on a margin call and still not effect new positions you can not lose money. the principle of the firm i worked was short the market from the 80's until he passed a few years back. somebody is selling those options it was always us.

#PositionLimits

WTF is this? You stated position limits from your dial-up connection. You're woefully out of your depth.

#Bently

 

[destriero]

LTCM were amateurs... their partners averaged $5MM in bonuses in their final year at Salomon before starting LTCM. Mark Brown can't finance a toothbrush.

 

[destriero]

No chance you were continually short vol sellers at position limits and never had a losing month.

If you are at position limit,how exactly do you roll into a position 10x larger?

Im assuming you traded away from the exchange

Right he was down 4-5x the credit received on 20K SPX puts and rolled into GOOG vol. Sounds plausible. Guy lives in a shack.