put writing = collecting free $$$???

Quote from frank grimes:

You know we are close to a top, when someone gets the idea to sell spoo puts AFTER the mkt has gone up for 4 1/2 years.
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But that is when it is risk free! When it has already gone down that it CANNOT possibly go down anymore!

:confused:
 
Quote from frank grimes:

You know we are close to a top, when someone gets the idea to sell spoo puts AFTER the mkt has gone up for 4 1/2 years.
More...
This reminded me when CNBC started to run education sessions on the benefits of shorting the market. IIRC, this was after the mkts had dropped like a rock and many people had lost tons of money (middle 2002). Teach 'em how to short just when the mkt is about to turn up .....

On the original post, every time I see the term "Risk Free", I cringe because another noob is about to be fleeced. Obviously, selling options has its place, but it's sure not risk-free....
R
 
umm yeah, writing puts is risk-free. No matter what happens to the market, you won't lose money.

good luck with your (brief) trading career.
 
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