Naked Option sellers are major losers today

[zdreg]

re: SIVB
Massive selling of SIVB by naked put writers in pre-opening as writers know stock will be sold to them at much higher prices. Puts are likely 150 points+ in the money.
Maybe even market makers were not fully hedged. 10 naked put options would be a $150,000 loss

 

[ZBZB]

How do you trade options in the premarmket?

 

[newwurldmn]

You read his incoherent post and that’s your only question?

 

[maxinger]

Naked women are 'good'. Naked option selling is bad

--->

Only attractive Naked women are 'good'. All Naked option selling is bad

 

[Robert Morse]

I did not understand your post, but I've never seen a stock do this pre-market with a large market cap.

re: SIVB
Massive selling of SIVB by naked put writers in pre-opening as writers know stock will be sold to them at much higher prices. Puts are likely 150 points+ in the money.
Maybe even market makers were not fully hedged. 10 naked put options would be a $150,000 loss

 

[zdreg]

My post was clear to a given moment at time. My assumption as to price is likely to be wrong if news pending turns out to be favorable. My calculation was based upon current price.
The stock is down 150 points in 2 days. What is unclear?

Current action was an outlier event. If it reverses a lot of premarket shorts will suffer.

 

[Scataphagos]

Selling naked options is high risk... even stupidly so. You can get slammed... even wiped out in a blink on reaction to bad news for your position. Nobody with other than a financial death wish would play naked options in any size relative to their purse. Unfortunately... naked writers tend to go overboard in their positions because (1) the premiums they collect are small, so they sell LOTS of them, and (2) they believe "odds are the options will expire worthless and I'll get to keep all the premium". That works until it doesn't. And when it doesn't, it can be a disaster.

SIVB this day, a classic example.

 

[zdreg]

My post was clear to a given moment at time. My assumption as to price is likely to be wrong if news pending turns out to be favorable. My calculation was based upon current price.
The stock is down 150 points in 2 days. What is unclear?

Current action was an outlier event. If it reverses a lot of premarket shorts will suffer.

I did not understand your post, but I've never seen a stock do this pre-market with a large market cap.

View attachment 308502

Please explain what you did not understand.

 

[M.W.]

Everyone calling you a MUTT. Further explanation needed?

;-)

Please explain what you did not understand.

 

[zdreg]

Everyone calling you a MUTT. Further explanation needed?

;-)

Obviously these people don't have mirrors.

;-)