ideas for profit taking

[GRULSTMRNN]

And then? You spectacularly blew up

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.

 

[Turveyd]

You exit taking a profit at the point/time where you think, started to turn against you.

If you try exit, at what you think is the high then there will generally always be another high and another and another, better to lose a little off the top then cut it short and take a small profit.

p.s. your Max loss will be your account value ??? Accounts can go negative

 

[murray t turtle]

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

%%
I see your point;
but not so much going short that got them in to trouble.
MS market maker rightly named it= insane leVerage. That + like they say in Chicago- the smarter you are= the longer it takes.LOL............................................................................................................................................................................................,,

 

[ironchef]

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.

They were printing money from 1994-1998.

 

[ironchef]

%%
I see your point;
but not so much going short that got them in to trouble.
MS market maker rightly named it= insane leVerage. That + like they say in Chicago- the smarter you are= the longer it takes.LOL............................................................................................................................................................................................,,

You forgot to say "NOT A PREDICTION"

 

[taowave]

A little too levered for my taste..

"At the fund’s height in 1998, LTCM had approximately $5 billion in assets, controlled over $100 billion, and had positions, whose total worth was over a $1 trillion. At the time, LTCM also had borrowed greater than $120 billion in assets."

They were printing money from 1994-1998.

 

[murray t turtle]

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.

%%
I agree;
with about 88.777 %of that.Actually except for all the insane leverage/insane leverage, Russian bonds-LOL;they thought+ i thought they would be/ were smart to fail.

And a buddy gave me some Russian made ammo[.22]; it was steel.LOL What a dumb idea; steel rusts LOL; unless the evil empire planned on rusting up ammo for a capitalist LOL,,, But none of this is a prediction; believe it or not, my US brass coated shotshells red rusted down before the Russian ammo LOL[Short time edit; i like liquid Juicy Juice/strawberry/watermelon, not red russian junk.LOL]

 

[murray t turtle]

They were printing money from 1994-1998.

%%
Good thing , ironchief,we did not make a prediction; on them[LTC] also LOL-LOL.
Actually those capitalists [LTC] that would buy Russian bonds LOL; that makes as much sense as Russians selling steel ammo, which turns rusty red runs down, about the time a capitalist needs it. They did well for several years, then on a line chart, =big downtrend........................................................................................................

 

[ironchef]

And a buddy gave me some Russian made ammo[.22]; it was steel.LOL What a dumb idea; steel rusts LOL

But you don't understand, the Russians are more environmentally conscious, steel pellets are less poisonous to wildlife that ingested them, ducks, eagles, wolves, bears ...., instead of ingesting lead.

 

[murray t turtle]

But you don't understand, the Russians are more environmentally conscious, steel pellets are less poisonous to wildlife that ingested them, ducks, ...., instead of ingesting lead.

%%
OK; i do that when i want dead /red ducks downtrend[steel]