Selling naked calls OTM & covering them just before ITM?

Yeah,I am reading what you wrote and fighting not having my eyes roll to the back of my head..

You are advising him to "just buy a call instead of buying shares"?????

Can you be any more nebulous??

More to the point,you dont really grasp delta hedging,and it now appears you are reccomending shorting wide verticals...

Care to be a bit more specific???

On second thought,please dont:)


TheDawn said:
WHY would I suggest a long vertical?? I have been very clear right from the beginning.


Are you reading the same text that I wrote? WHERE did you see me suggesting to buy a long vertical???!!! :wtf: You even confirmed my choice of buying a call yourself responding to my post so I thought you obviously understood that I am advising the guy to just buy a call instead of buying shares to hedge against his short call although I understand what he was trying to do by buying the shares only when assignment is imminent.



And why would I suggest for him to hedge with a long vertical? He will be getting another naked short exposing himself again to the same problem. So what? He's going to get another long vertical containing another naked short to cover the naked short to be short forever?? LOL Is that what you institution guys do? Covering shorts with more shorts?? LOL

Now that's frightening... LOL
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taowave said:
Care to be a bit more specific???

On second thought,please dont:)
More...

Yeah we will leave it at that. As long as the OP understands what I said which has been quite clear right from the beginning.

taowave said:
Yeah,I am reading what you wrote and fighting not having my eyes roll to the back of my head..
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You need to get some sleep, taoman. Your reading comprehension is getting dangerously close to the level of your options idol. That is not good. LOL
 
taowave said:
Yeah,I am reading what you wrote and fighting not having my eyes roll to the back of my head..

You are advising him to "just buy a call instead of buying shares"?????

Can you be any more nebulous??

More to the point,you dont really grasp delta hedging,and it now appears you are reccomending shorting wide verticals...

Care to be a bit more specific???

On second thought,please dont:)
More...

Btw are you going to Las Vegas for the Money Show?
 
Money Show 2023... Infinite Gamma!

Special guest:

MsDawn: will show you how to use stochastics to time your trades. Structuring infinite gamma. Best practice on dealing with a debit net liq, that pesky citation to discover assets, pro se defense, and more!
 
destriero said:
Money Show 2023... Infinite Gamma!

Special guest:

MsDawn: will show you how to use stochastics to time your trades. Structuring infinite gamma. Best practice on dealing with a debit net liq, that pesky citation to discover assets, pro se defense, and more!
More...

there’s a guy pitching theta as a dividend strategy.
 
destriero said:
I know a guy who's worth >100MM and has traded vol for 20Y in bank stocks. He was on the underwriting side of the biz. He made 5 last year shorting vol on bank stocks. I asked him, "isn't the vol bottom decile?" and he answered that he has no idea where the vols are.

You gotta be in the market to make it!
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that is only 5% return on his capital. I hope he is long t bills as well.

Edit: that is better than stocks or bonds in 2022.
 
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