My OPTION TRADES..... part 2
- Thread starter Put_Master
- Start date
So he makes money if the stock has a nice move, but loses money if the stock doesn't move much or the VIX (IV) trends down?
Yup ...... That explanation is clear as mud. Keep up the good work.
Diaoptions, a few pages back I gave you $25,000 and an opportunity to select any one of several credit spreads to invest it in.
And then tell us how many contracts you could initiate with the $25,000 for the spread you selected.
And you have not responded.
Don't tell me you wasted it all on gambling, shows, and Vegas whores!
I should have known you'd be too irresponsible to handle that much cash!!!
I should have given it to Dan.
And then tell us how many contracts you could initiate with the $25,000 for the spread you selected.
And you have not responded.
Don't tell me you wasted it all on gambling, shows, and Vegas whores!
I should have known you'd be too irresponsible to handle that much cash!!!
I should have given it to Dan.
i could not agree more re options strats doing atm...u have to ask yourself...why do so many guys blow out with otm credit spreads? (ie: see spx spreadtrader journal)
a credit spread deep otm is far more risky cause of the size inevitably put on to get a decent credit....most accounts could never absorb assignment or a breach of the strikes..i can't tell you the guys i have seen blow out in that strat.
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Try looking at this web site
35 years of trading and years of succesfull CREDIT SPREAD option trading DOCUMENTED
http://www.fullyinformed.com/
cheers
john
lol john...no need..i do not trade options any more .(i do sell atm calls, and puts only on a separate basket of my equities...but very small in relation)
just been in this game for 20 + years in all kinds of forms...was told by atticus in 2003 and another very seasoned guy in options when i started playing there stick with atm if i had to do those type of trades and boy were they right...
good luck with your documentation..i'll stick with what i've seen in realtime through the yrs. credit spreads deep otm suck shit.
frank
edit: omg..you are a shill/vendor etc.. good luck as we both know PT Barnum was spot on (local hero) you have your edge in that fact.
Atticus,would you offer a bit more on why you favor ATM options.
I get the 30 day and fully understand the gear up in OTM concerns,but why not trade ITM?
Shouldnt it be based on the distribution of returns(and holding period) for your given strategy?
Thanks,
T
P.S. After re-reading your post,it appears you are talking about selling options.I am with you...Any thoughts on buying options?
I get the 30 day and fully understand the gear up in OTM concerns,but why not trade ITM?
Shouldnt it be based on the distribution of returns(and holding period) for your given strategy?
Thanks,
T
P.S. After re-reading your post,it appears you are talking about selling options.I am with you...Any thoughts on buying options?