Jim Rogers: Citigroup is a buy at $5
- Thread starter turkeyneck
- Start date
Heres a good question to test the stuff you have between your ears:- If you knew a stock was going to drop 50% AND TRENDING DOWNWARDS, WOULD YOU SELL CALLS [with big margins & UNLIMITED LOSS POTENTIAL & limited gain] OR BUY PUTS THAT DONT HAVE MARGIN CHARGES AND HAVE UNLIMITED GAIN POTENTIAL with limited loss??
MY GUES IS THAT YOU WILL ANSWER THE QUESTION WRONGLY!!
REGARDS
Sir MUPPET
usman,
You are in wrong forum!! You have been brain washed here!!
I have been called a muppet several times by members here who have been residing here for donkey years and dont know what they are saying about options!!
You never sell/write calls on a good stock [like Citi] that is falling because of bad news or fear! Insted you either buy puts as you cant lose more than the premiums paid and you have unlimited gain potential if stock goes thru the floor with NO margin payments to brokers!! OR short futrs with stop loss or trailing stop!
BUT NEVER WRITE CALLS!! Short/WRITING ATM CALLS carries heavy margins and UNLIMITED LOSS POTENTIAL FOR JUST THE LIMITED GAIN RECIEVED FROM SHORT CALLS. [PREMIUMS]
YOU WILL NOT SLEEP AT NIGHT WITH SHORT CALLS/PUTS!! YOU CAN LOSE YOUR HOUSE YOUR SHIRT YOUR CAR AND YOUR WIFE & KIDS TOO!! AND YOUR MIND TOO!!
TRUST ME !! I KNOW WHAT I'M SAYING!!
REGARDS
Sir MUPPET
you are rite but wont the 'buy put' strategy be expensive(due to its high prices)? for prices near the current stock price there wudnt be any gain and there is a chance that too low strike prices never go 'in the money'
and who knows maybe they are buying puts too....either way theres always someone who is writing calls and puts(and assuming limited gains and unlimited losses potential). THey know what they are doing and maybe thts y they are called pros
shorting futures is ofcourse common sense but we are talking about trading options as 'additional income'
and who knows maybe they are buying puts too....either way theres always someone who is writing calls and puts(and assuming limited gains and unlimited losses potential). THey know what they are doing and maybe thts y they are called pros
shorting futures is ofcourse common sense but we are talking about trading options as 'additional income'
Quote from boost123:
usman,
YOU WILL NOT SLEEP AT NIGHT WITH SHORT CALLS/PUTS!! YOU CAN LOSE YOUR HOUSE YOUR SHIRT YOUR CAR AND YOUR WIFE & KIDS TOO!! AND YOUR MIND TOO!!
TRUST ME !! I KNOW WHAT I'M SAYING!!
REGARDS
Sir MUPPET
That is because you are a no nothing muppet!!
Obviously you have never heard about risk management. Who do you think take the other side of your call or put buying? The options fairy maybe?
Usman
On your first post you said your "NO" option expert.
My reply to you was with that in mind that your NOT an Option expert. If your NOT an expert it would be foolish writing calls or puts on Citi!! In the same way you would NOT allow your child to drive your car or play with matches or knifes/guns.
Writing Options [calls & puts] is ONLY for the pros!! Would you swim in a shark infested waters??
When you have over a million $$$$$ profits and over 5 yrs expirience in derivatives and Options then it would be OK to write calls & puts!!
If you think Citi is going down further? Buy PUTS OTM and some ATM. 2 to 4 mths out [no margin and limited loss with unlimited gain potential]
If you think Citi is going UP soon? Buy some ATM Calls and some OTM calls 2 to 4 mths out. [NO margin and limited loss with unlimited gain potential]
Only buy options with money you can afford to lose! [ risking a small % of your yearly gains]
Rgrds
Booster
OK BIG boy..
Firstly i think you mean KNOW nothing muppet [in your post to me] and not NO nothing muppet.
Secondly, you dont KNOW ME and you DONT know what my account is worth!
Thirdly, You dont KNOW how much profits i banked this year alone from the MARKET MAKERS!
Fourthly, I do know about risk management! and its NOT the same risk management that your silly brains KNOWS!!
Fithly, I sometimes write options! and theres NO fairys trading options!!
Sixtlhly. My Options writing is mostly AGIANST THE MARKET MAKERS on their BID PRICE on short strangles.
And lastly. My advice to your stupid brain is:- THINK BEFORE YOU POST!! YOU HAVE MADE AN ASS OF YOUR SELF!! AND NOW YOU CANT DELETE YOUR POST OR AMEND IT!! ITS FOR THIS REASON I DELAYED MY REPLY TO YOU!!
YOU CANNOT AMEND OR DELETE POSTS HERE AFTER 30 MINS HAVE PAST.
Good night to you Sir! and can you please make that your LAST post to me. As i dont have time to waste on people like you. Happy new year!
Regards
Sir Muppet
Ever notice how when interviewed on CNBC, Jim Rogers NEVER HAS A LOSING TRADE?
He's been long commodities for years, and short financials . . . blah, blah, blah.
In my humble opinion, that's because he is simply a self-promoter ( enjoys being in the limelight on TV and in the media ), is full of hot "air", and never trades . . . My guess is that he took his cut from the Quantum Fund nearly 25 years ago and put it in muni-bonds.
End of story.