overtrading/undertrading

O

osho67

I use IB account and my strategy is either to sell naked puts and if I have been assigned stock ,sell covered call writing. I only use weekly options on only ETFs. Mostly I use SPY, IWM, QQQQ, SLV, and GLD.

My concern is to find out - am I overtrading or undertrading? I definitely donot want to overtrade and want to leave comfortable margin but I donot want to significanly undertrade as well as this will result lower return on capital.

Please tell me how to achieve a healthy balance? What items in the a/c window I should be monotoring constantly . Please bear in mind ETFs are less volatile and I am trading only weekleys .

Comments are much appreciated. Thanks.
 
Quote from outsource:

Are you serious?:D
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honestly i did not understand your reply. Can anybody be not serious if he is overtrading ? I am really looking for genuine guidance . Help
 
Quote from osho67:

I use IB account and my strategy is either to sell naked puts and if I have been assigned stock ,sell covered call writing. I only use weekly options on only ETFs. Mostly I use SPY, IWM, QQQQ, SLV, and GLD.

My concern is to find out - am I overtrading or undertrading?
More...

You are probably an accident to happen...I guess this is what the other poster meant by "are you serious?" but better ask him.

Given the recent flash crash, selling naked puts is the ultimate risk...
 
Quote from intradaybill:

You are probably an accident to happen...I guess this is what the other poster meant by "are you serious?" but better ask him.

Given the recent flash crash, selling naked puts is the ultimate risk...
More...

If I sell a naked put at a price I would like to buy particular ETF , why is it an ultimate risk. ?
 
I assume you're selling cash secured puts and covered calls?

Selling puts for the purpose of aquiring stock at the strike price or keeping the premium.

Selling calls against the shares you own for the purpose of disposing of them at the strike price or keeping the premium.
 
Quote from osho67:

If I sell a naked put at a price I would like to buy particular ETF , why is it an ultimate risk. ?
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You are telling me you trade without understanding the risks?

Why should I educate you then? If you do not understand that if the price of the underline drops much below the strike price you will be obliged to buy at a much higher price and automatically face a substantial loss. In this market and during situations like the recent flash crash you can get killed.

But again, people that trade without understanding the risks really deserve it.
 
Quote from osho67:

I use IB account and my strategy is either to sell naked puts and if I have been assigned stock ,sell covered call writing. I only use weekly options on only ETFs. Mostly I use SPY, IWM, QQQQ, SLV, and GLD.

More...

I like it.

Are you trading too much? I doubt it. Given your strategy I think the more stocks/etfs you do the safer it is... kind of like an insurance company.
 
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