My OPTION TRADES..... part 2
- Thread starter Put_Master
- Start date
Speaking about the "drama" of a BULL market.....
This is what happens when you combine the two.
http://www.youtube.com/watch_popup?v=2h-WhhqFjv4&vq=small
This is what happens when you combine the two.
http://www.youtube.com/watch_popup?v=2h-WhhqFjv4&vq=small
You think there weren't?
I saw several people lying in twisted weird positions, not moving.
They didn't look very healthy to me!
This thread seems to be about animals and disgusting homosexual references.
Is that the best you can do????
Don't you wonder about the maturity and general mental health of someone whose mind spontaneously turns to such things.
Is that the best you can do????
Don't you wonder about the maturity and general mental health of someone whose mind spontaneously turns to such things.
Just curious... how can you claim that selling naked options cannot "crash" an account... I've been doing this since 1990s and I can tell you the most lost was the result of selling naked puts/calls.
Is there something different or special about your naked put selling strategy that insulates you from black swan etc.
Wheter or not naked put selling can "crash" an account depends on your spesific strategy. if you just sell naked puts randomly and let them run to total losses without any adjustments in case of touch, then yeah your account will probably crash. But thats' not the put selling that does, its you being stupid about money management.
<<< Just curious... how can you claim that selling naked options cannot "crash" an account...I've been doing this since 1990s and I can tell you the most lost was the result of selling naked puts/calls. Is there something different or special about your naked put selling strategy that insulates you from black swan etc. >>>
Iceman, I believe you accidentally took that one single sentence out of context of my post, which I reposted below.
I was NOT talking about selling naked puts or naked calls. It was actually a discussion about credit spreads.
If you read my response below AND the post from Danshirley to which I was responding, you will better understand the "context" of my statement.
That being Dan was responding to my "hypothetical" $100,000 account I set up for his credit spread strategy.
He accused me of setting up 5 spread examples in the hypothetical account, which "HE" said was designed to deliberately.... "crash the account", per the moves I made in potentially managing them during difficult times.
The quote of mine you are responding to, was merely me responding to Dan's accusation, telling him I did not make any moves that would crash an account.
Again, the discussion was about being invested in credit spreads. Not naked puts or naked calls. I believe a strategy of having 100% of ones cash invested in a credit spread strategy, can indeed cash an account. That hypothetical $100,000 account, can go to a "zero net worth" faster than most spread traders realize. WHY?
Because in the very reasonable example I used, of spreads with strikes from $30 - $70, with the 100,000 equally distributed, it would cost the investor ONE MILLION DOLLARS to buy them all, and he only had $100,000. Thus his only choice for "risk managment", was to close for a loss.
And if he waited until the stocks were at or below his lower strikes.... his account would be worth next to nothing, Wiped out.
(I used 5 stocks in my example. But it would make no difference if 25 stocks were used.)
If he instead closed with the stock right in the middle of his 2 strikes, the account would still lose MORE THAN half it's value. The full "context" of my response to Dan is below:
Iceman, I believe you accidentally took that one single sentence out of context of my post, which I reposted below.
I was NOT talking about selling naked puts or naked calls. It was actually a discussion about credit spreads.
If you read my response below AND the post from Danshirley to which I was responding, you will better understand the "context" of my statement.
That being Dan was responding to my "hypothetical" $100,000 account I set up for his credit spread strategy.
He accused me of setting up 5 spread examples in the hypothetical account, which "HE" said was designed to deliberately.... "crash the account", per the moves I made in potentially managing them during difficult times.
The quote of mine you are responding to, was merely me responding to Dan's accusation, telling him I did not make any moves that would crash an account.
Again, the discussion was about being invested in credit spreads. Not naked puts or naked calls. I believe a strategy of having 100% of ones cash invested in a credit spread strategy, can indeed cash an account. That hypothetical $100,000 account, can go to a "zero net worth" faster than most spread traders realize. WHY?
Because in the very reasonable example I used, of spreads with strikes from $30 - $70, with the 100,000 equally distributed, it would cost the investor ONE MILLION DOLLARS to buy them all, and he only had $100,000. Thus his only choice for "risk managment", was to close for a loss.
And if he waited until the stocks were at or below his lower strikes.... his account would be worth next to nothing, Wiped out.
(I used 5 stocks in my example. But it would make no difference if 25 stocks were used.)
If he instead closed with the stock right in the middle of his 2 strikes, the account would still lose MORE THAN half it's value. The full "context" of my response to Dan is below: