Naked Index Calls = $$$$
- Thread starter paysense
- Start date
I'm not too sure about that..
...spreads (I'm told) reduce margin requirements...
SPX (SXMGJ) Jul 1550's @ 4
same amount of contract buys.
Point being...profiting off the top with index options.
My rule to limit losses to 50% may need to be changed with spreads. I know I said I'd iron out these details by now...but haven't taken the time.
And of course, by (most) all standards this market IS correcting - but by the close severely undercutting support is like...fantasyland?!?
ROTFLMAO Gilbert aka Paysense
...i think i got it right now - just not sure how many contracts will bring in the 100k/margin requirements.
Please note, with last market top call stopped, this trade will at best regain significant losses (for SPX trade), yet add a tidy profit. Just not as much as (usually) expected due to this schizo market.Ps
SPX (SXMGJ) Jul 1550's @ 4
same amount of contract buys.
Point being...profiting off the top with index options.
My rule to limit losses to 50% may need to be changed with spreads. I know I said I'd iron out these details by now...but haven't taken the time.
And of course, by (most) all standards this market IS correcting - but by the close severely undercutting support is like...fantasyland?!?
ROTFLMAO Gilbert aka Paysense
...i think i got it right now - just not sure how many contracts will bring in the 100k/margin requirements.
Please note, with last market top call stopped, this trade will at best regain significant losses (for SPX trade), yet add a tidy profit. Just not as much as (usually) expected due to this schizo market.Ps
You did not say spreads you said naked calls. SO you telling us you now can sell close to $3 million in margin of naked calls or is this more hypothetical trading...
My 3yo articulates better than this. You know how many contracts are required to receive a $100k credit. Please call your broker and request that they sell enough SPX calls to satisfy your $100k credit requirement. You may hear a snicker before they cut the line.
Please explain what you're doing here. Would you have us believe you shorted 125 of the 1535Cs? Obviously you're paper-trading the calls with no accounting of variation requirements.
EDIT: I have my answer... I reluctantly read the opening post on this moronic thread. He's [his words, sic] "theoretically" selling naked index calls. Of course, that nagging initial and variation haircut is of little consequence.
OK, my "theoretical" trade for the day. I sold 100k of the SPX July 1400P at $6.20. A cool $62,000,000 less commissions. A paltry $1,460,000,000 in initial haircut, but IB is giving me three days to wire to cover. Beat that Gilberto!
I believe it was Cache Landing that mentioned in previous post that to accomplish my "stated" (not actual trades) goals outlined in this forum that - you are right - naked sells won't work due to excessivve margin requirements.
I do want to (soon) unfold this strategy at C2 as a way to make (easy?) heady annual gains by profiting off bottoms and tops.
With that said a hypothetical 1M account may have the opportunity 2-4 times a year. If calls are correct (plan on a phase into as marekt top/ bottom confirms with spx then qqq then djx - or a variation therof).
What does this do - perhaps establish before C2 before real fund management - a viable 50%+ per year (average, atticus) fairly conservative plan.
Perhaps also to increase annual "average" in CC account (using the top trades).
So without starting a new thread we go with SPREADS???
What are the margin requirements and how many contracts can (if possible) bring in 100k into account.
Also I remember (you should too) that 1M is now down due (? ~810,000) due to previous BuRP.pS
I do want to (soon) unfold this strategy at C2 as a way to make (easy?) heady annual gains by profiting off bottoms and tops.
With that said a hypothetical 1M account may have the opportunity 2-4 times a year. If calls are correct (plan on a phase into as marekt top/ bottom confirms with spx then qqq then djx - or a variation therof).
What does this do - perhaps establish before C2 before real fund management - a viable 50%+ per year (average, atticus) fairly conservative plan.
Perhaps also to increase annual "average" in CC account (using the top trades).
So without starting a new thread we go with SPREADS???
What are the margin requirements and how many contracts can (if possible) bring in 100k into account.
Also I remember (you should too) that 1M is now down due (? ~810,000) due to previous BuRP.pS
I'm really not trying to lecture you at every turn. Sure, the market imploded after your call when the SEC inquiry into CDOs hit the wire.
The nagging problem with the strategy is the initial and variation requirement. It requires $2.4 million to write $97k in premium -- a maximum return of 4% if you never receive a margin call.
I urge you to look elsewhere for the easy buck.
The nagging problem with the strategy is the initial and variation requirement. It requires $2.4 million to write $97k in premium -- a maximum return of 4% if you never receive a margin call.
I urge you to look elsewhere for the easy buck.
...so we wake up to the headline that market to open with a gap lower. OK seems 40-80 points lower on the Dow, gap below support for the S&P 500 and Midcap 400. Lower for the Nasdaq, QQQ, etc.
BUT, we want to trade (thus far) in a narrow range and STILL fight back to the highs?
VIX/VXN has made significant jumps. Meanwhile my CC stock [IOC] gets pounded to the tune of 30%. A drop so quick in the last hour that if you weren't watching you couldn't avoid the serious clip.
Oh and on no news but a "rumored dry hole". Yeah, 6M shrs dumped when avg volume is 600k is more than rumor. Apparently the retail investor has to take the lumps, while institutions - who hadn't figured the market to correct when it did...drive [MM] it up so they can get out with their skins. What other reason?
So the previous gap up cost me more than a 50% stop on my naked positions (boy I feel vulnerable) and eliminate most all gains I rightly should have again calling this top with the subsequent sells. The only consolation is that these calls usually aren't this tough to capitalize on.
Trying to bide my time with my C2 account and get a 15-20% jump once this market tanks - avoid dumb losses like getting vested at this juncture and take a 3% clip. No prob. I'm in cash...market doesn't tank, says it's ok to buy, but warily I phase in. IOC goes up ITM in high volume as the week goes by, cool. get next positon. IOC implodes, now cashed out with 8%+ totaly loss - and adantage over market largely gone.
Anyway, will gain some leg up and regain 8% easy enough...BUT YOU CAN"T SAY I DIDN"T TRY TO AVOID this nonsense.
And the market still hasn't really broken down, yet!Ps
BUT, we want to trade (thus far) in a narrow range and STILL fight back to the highs?
VIX/VXN has made significant jumps. Meanwhile my CC stock [IOC] gets pounded to the tune of 30%. A drop so quick in the last hour that if you weren't watching you couldn't avoid the serious clip.
Oh and on no news but a "rumored dry hole". Yeah, 6M shrs dumped when avg volume is 600k is more than rumor. Apparently the retail investor has to take the lumps, while institutions - who hadn't figured the market to correct when it did...drive [MM] it up so they can get out with their skins. What other reason?
So the previous gap up cost me more than a 50% stop on my naked positions (boy I feel vulnerable) and eliminate most all gains I rightly should have again calling this top with the subsequent sells. The only consolation is that these calls usually aren't this tough to capitalize on.
Trying to bide my time with my C2 account and get a 15-20% jump once this market tanks - avoid dumb losses like getting vested at this juncture and take a 3% clip. No prob. I'm in cash...market doesn't tank, says it's ok to buy, but warily I phase in. IOC goes up ITM in high volume as the week goes by, cool. get next positon. IOC implodes, now cashed out with 8%+ totaly loss - and adantage over market largely gone.
Anyway, will gain some leg up and regain 8% easy enough...BUT YOU CAN"T SAY I DIDN"T TRY TO AVOID this nonsense.
And the market still hasn't really broken down, yet!Ps