Question about options

Or maybe, he is thinking about covered calls? If you own the stock then, selling calls would involve no risk other than our shares being assigned if it ends up in the money. You are still giving up something, which is the capital gains on the stock if it runs up big.
 
smallfil said:
Or maybe, he is thinking about covered calls?
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Based on the guy's posts, I wouldn't use the word thinking here and also don't think it's worth thinking too deep yourself on the significance of his ramblings.

Reminds me of a movie about a simple minded gardener, who somehow ends up in the proximity of the President of the United States and noone knows who he is, what he does and what are his qualifications, but inferring from the entourage, there must be a lot of value in there, isn't it? (He has spent his whole life tending the garden and has never left the property. Other than gardening, his knowledge is derived entirely from what he sees on television: https://en.wikipedia.org/wiki/Being_There )

So the guy spends most his time being silent and only from time to time states enigmatic sentences filled with botanical references. And people are blew out of their mind by the deep philosophical wisdom that's hiding in there, which they don't get it, but must be there since the guy is hanging around the President of the United States.

So unless you wanna debate about gardening and TV shows, ignore Andy until he studies and comprehends (if he's capable) a few books like these:



Otherwise continue to entertain (with) the guy but remember what he's doing is not quantitative finance, not even finance, just botanics.
 
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I`m not chauncey gardiner if that is what your inssinuating i`m trying to cut down the learning curve as much as possible. I need to know some good programs for investing something passive income. There are people making passive income from options of 30% a year. Which i belive is high. They do say it`s low risk i`ll go with medium.

As they all declare a 10% per month profit range. But 30% is really what they are making form their own statemnts. Now Aquarius there is someone here claming with little to not risk that you can make 50-60% per year which is great. If we remember the black and shcoles formula that was without risk untill the chineses mortgage prime crysis.

There is 1 documented time in history where someone acutally discuvered a method to make money from the markets without ever loosing it . Many claimed that it was the black and shochles formula rediscovered untill it obviously crashed. I didn`t have enought time to proper study options that is why the noob questions.

Why would i read 5-10 books that have a best seller status and loose 1 month of my life when i can levrage for free the knowldge of others . Yes i am making fun of you all Aquairius because I HAVE SO MUCH TIME FREE on my hands like you to obviously write nonesene about a gardnier becoming president.

There are many things to purse in life at the moment they are internet marketing and selling products (YOU GENIUS) ecommerce because it`s a booming market. And you have to create some passive income a basket of investments in real estate stocks and index funds i know you know all of this because you are just testing me to see how stupid i am. and you know i have a ton of time on my hand YOU GENIUS.
 
andy_p said:
This money [revenue of Put sale] represents Instant Guaranteed Income of the nature of the options contract and may be invested in short-term interest-bearing instruments or may be used to sell additional insurance. In both situations, revenue from premiums grows under the compounding effect and with them and the balance of the seller's account.
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No. Wrong. Grossly (or immorally) misleading.

Income is revenue received from (in this example) putting capital to work as margin capital. That capital is now "at work" and is unavailable to pursue other worthy goals (excepting as margin capital for the other side of the same market, same expiration). That capital is covering the liability created with the sale of the Put. The revenues received are already netted against the liability created, and have reduced the margin(ed) capital by that amount; they cannot be further "used to sell additional insurance." There is no such "compounding effect".

There are differences here, between cash accounts, margin accounts, portfolio margin accounts; between SEC and SPAN-accursed CFTC accounts; but you'd best have these basics down before you get lost in the high weeds of the exceptions.
 
Many insurance companies lose money (or even went belly up) after collecting billions of premium - during 2008-9 and during major disasters. Selling option premiums are no different. Don't assume your counter parties are dummies, willingly hand you their hard earned money.
 
andy_p said:
I`m not chauncey gardiner if that is what your inssinuating i`m trying to cut down the learning curve as much as possible. I need to know some good programs for investing something passive income. There are people making passive income from options of 30% a year. Which i belive is high. They do say it`s low risk i`ll go with medium.

As they all declare a 10% per month profit range. But 30% is really what they are making form their own statemnts. Now Aquarius there is someone here claming with little to not risk that you can make 50-60% per year which is great. If we remember the black and shcoles formula that was without risk untill the chineses mortgage prime crysis.

There is 1 documented time in history where someone acutally discuvered a method to make money from the markets without ever loosing it . Many claimed that it was the black and shochles formula rediscovered untill it obviously crashed. I didn`t have enought time to proper study options that is why the noob questions.

Why would i read 5-10 books that have a best seller status and loose 1 month of my life when i can levrage for free the knowldge of others . Yes i am making fun of you all Aquairius because I HAVE SO MUCH TIME FREE on my hands like you to obviously write nonesene about a gardnier becoming president.

There are many things to purse in life at the moment they are internet marketing and selling products (YOU GENIUS) ecommerce because it`s a booming market. And you have to create some passive income a basket of investments in real estate stocks and index funds i know you know all of this because you are just testing me to see how stupid i am. and you know i have a ton of time on my hand YOU GENIUS.[/]
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there's now way around the game if you want 30% be prepared to lose minimum 30%
 
ironchef said:
Many insurance companies lose money (or even went belly up) after collecting billions of premium - during 2008-9 and during major disasters. Selling option premiums are no different. Don't assume your counter parties are dummies, willingly hand you their hard earned money.
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Mostly they are the ones with the big buildings though
 
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