My OPTION TRADES..... part 2

[atticus]

Quote from danshirley:

Atticus:
"Let me elaborate. I have read very little of the thread as selling garbage puts is of no interest."

It's interesting how one chooses words to imply emotionally something that is prima-facie idiotic.

'Garbage puts'

If they are garbage then they are worthless... and if I can get somebody to pay me for them that's pretty clever.

But if you say it with an implied sneer (Atticus's stock and trade) it seems to say that the seller is somehow a 'garbage man' for selling them.

Certainly I wouldn't want to sell puts that were very valuable...since that would by definition put me in inordinant danger of having to pay on them.

If you are going to sell puts sell garbage puts by all means.

They're garbage if the primary position. To the buyer (in isolation) as they have such a nominal probability that they're of little use outside of a lottery ticket. To the seller (in isolation) they're garbage because all of the convexity hurts the seller. Probability is very high... the probability of earning a very small amount of money.

I never sell garbage to open a position. I am a net-buyer of garbage simply to reduce the haircut on positions. Shorting an ATM straddle on AAPL is a $16k req per lot. Buying the 600/665/730 Sep fly runs a debit of 3.7k and has virtually identical (initial) greeks and limits risk at the wings. It also affords the position long gamma outside the wings.

The garbage strangle is simply a mechanism to reduce haircut. In that use they have a ton of utility. To use your metaphor; we're both garbage men.

 

[danshirley]

PM:

Who the hell do you think you are???

Do you have some official capacity here???

Are you in charge of thread names???

It really doesn't matter what you do to sabotage my thread because you don't like the title of the thread.... I don't post here any more.

I have news for you..... neither do you.

 

[danshirley]

They're garbage if the primary position. To the buyer (in isolation) as they have such a nominal probability that they're of little use outside of a lottery ticket. To the seller (in isolation) they're garbage because all of the convexity hurts the seller. Probability is very high... the probability of earning a very small amount of money.

I never sell garbage to open a position. I am a net-buyer of garbage simply to reduce the haircut on positions. Shorting an ATM straddle on AAPL is a $16k req per lot. Buying the 600/665/730 Sep fly runs a debit of 3.7k and has virtually identical greeks and limits risk at the wings. It also afford long gamma outside the wings.

The garbage strangle is simply a mechanism to reduce haircut. In that use they have a ton of utility. To use your metaphor; we're both garbage men.


Is that English????? Or just Smokeese

 

[atticus]

Quote from danshirley:

They're garbage if the primary position. To the buyer (in isolation) as they have such a nominal probability that they're of little use outside of a lottery ticket. To the seller (in isolation) they're garbage because all of the convexity hurts the seller. Probability is very high... the probability of earning a very small amount of money.

I never sell garbage to open a position. I am a net-buyer of garbage simply to reduce the haircut on positions. Shorting an ATM straddle on AAPL is a $16k req per lot. Buying the 600/665/730 Sep fly runs a debit of 3.7k and has virtually identical greeks and limits risk at the wings. It also afford long gamma outside the wings.

The garbage strangle is simply a mechanism to reduce haircut.


Is that English????? Or just Smokeese

Yeah, simple arithmetic to solve for the fly requirement. I used TWS to calc the straddle requirement. If that's beyond you then no alteration in language is going to make it more clear.

 

[danshirley]

Atticus:

Just to make it clear what I think: I THINK YOU ARE FULL OF CRAP

 

[atticus]

Quote from danshirley:

Atticus:

Just to make it clear what I think: I THINK YOU ARE FULL OF CRAP

Noted, and your selling of these garbage spreads is proof that the S7 has less utility than a used tampon.

 

[danshirley]

'less utility than a used tampon'

Ah... a sophisticated turn of phrase. Were you an English major???

What the hell is an S7 ?????

 

[atticus]

Quote from danshirley:

'less utility than a used tampon'

Ah... a sophisticated turn of phrase. Were you an English major???

What the hell is an S7 ?????

Replace S7 with whatever useless license you hold.

 

[danshirley]

I found it:

The Series 7 examination.... to sell securities.

I have to laugh.

You think I am a security salesman.

Don't make me puke.

I am a Chemist (BS)
A Physiologist (MS)
A Biophysicist (PhD)
and a Computer Scientist (MS)

I have never sat for the S7 exam nor have I ever sold securities, insurance or annuities.

I would shoot myself first.

 

[atticus]

Quote from danshirley:

I found it:

The Series 7 examination.... to sell securities.

I have to laugh.

You think I am a security salesman.

Don't make me puke.

I am a Chemist (BS)
A Physiologist (MS)
A Biophysicist (PhD)
and a Computer Scientist (MS)

I have never sat for the S7 exam nor have I ever sold securities, insurance or annuities.

I would shoot myself first.

I pray for humanity that you're joking about your credentials.