Puts deep in the money

oh another recommendation.. based upon everyone heuristics your very likely going to spend tons of time throwing perfectly good money at a bad trade just because you can't accept the loss.. its a fact that we are usually willing to throw more then twice the amount of money to rescue a trade gone bad then we are willing to bet money in a positive orientation with the expected return from the gamble being twice that of the one with negative number.... part of my recommendation...
read Amos

http://en.wikipedia.org/wiki/Prospect_theory

know what anchors, and loss aversion are in your own life.. journal your trades.. and i don't mean just the numeric part.. your thoughts feelings, and reasoning behind the trade..
 
So you are short puts that are deep in the money on NFLX:

z


You are in deep dudu... but you know that.

I would never give you personal trading advice in an on-line chat room and you should never seek or accept such advice.

Not only is it unethical for anyone to give such advice it can be illegal.

Giving trading advice to individuals without a licence to do so is of questionable legal status... The only thing that makes it 'questionable' instead of definitely illegal is the lack of compensation. You can get away with it if you are not paid, but there have been cases pursued and new law is always being laid down.

It's one thing to spout off about the market in general and describe ones own trades... but another thing to offer to give advice to an individual based on his particular circumstances without a lot of legal ramifications... especially if one lacks a licence to do so. Only an idiot would do this.

There was a recent incident on another trading board where the resident guru was making under-the-table deals. He wasn't arrested (in my opinion he could have been) but was banned from the board.

Just because the yahoos on this board have big mouths and gigantic ego needs doesn't mean you should listen to them... and that includes me.

If you need a financial advisor get one... with a license.
 
Quote from cdcaveman:

hey putty man.. didn't i recommend you buying a protective put when you sold short puts n netflix? i remember you saying that you did.. even though you normally never spread.. or was that a different stock
More...

Yep, it was NFLX. I sold a Sept $45 put for $0.90.
After reading your and perhaps other resposes, i agreed with your suggestion and added a $37.50 protective put to it.
It was an excellent suggestion, as it was not the usual type of stock I invest in. This was much more volatile and unpredictable than my usual, and if it dropped below my $45 price, it's recovery potential is questionable.
It makes sense to protect my cash, in case it drops into the teens.... or worse.
Thanks again for bringing the idea to my attention.

BTW it's not that I never spread. I just prefer to consider it's use on an individual stock basis.
And this is absolutely the type I prefer to use it on. So i really have no idea why i didn't consider it initially.

Hence the benefit of sharing ones trade here, and accepting others feedback and discussion of them.
Are you listening Danshirley???
 
that is not how you spell dudu.. like come onnn.. come onnnn!! its freaking dooo doo... who does these things... there is your spelling advice from me.. arrest me already.. haha i am a egotist lonely and desperate to be filled with flattery.. i will give you free advice for nice comments in return.. thank you..
 
omg thats the best idea you've had yet... .. Hi Danny boy.. this is me thinking about you..

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