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Selling premium
- Thread starter NKNY
- Start date
Quote from Mispe:
Puzzling !
We will try hard to find out !!!
One more question to Dreamer :
You make directionnal bet or no ?
If yes it seems impossible not to be wrong from time to time !!
If no it seems impossible to reach this level of reward !!
I try to remain market neutral, but at times, it is hard not to have a bias, either in a particular symbol or in the market. I do follow current, intermediate and long term trends using simple moving averages and trendlines, both on symbols and the broad market indexes.
Sometimes I take a biased position and sometimes a neutral position, but I try to remain market neutral instead of trying to predict the direction of the market. However, having said that, my methods do not rely on my accuracy in predicting the direction of the market. If anything, it only sometimes enhances the results and sometimes it reduces the results. I believe the end result is a wash.
Quote from Walther:
To all.
Would someone just post general rules to option writing, instead of fruitless ping-pong with words?
Walter
*Chuckles*
Sounds like you want something for nothing, Walther. Do your study and homework. The answers are out there. Think outside the box. I have not found the answers in any book though I have studied many.
Thanks for answering my question dreamer. When you go market neutral, which is appears you are shorting premium, what kind of set up are you using for the entry?
Are you legging in when you do attempt market bias?
Good trading.
Are you legging in when you do attempt market bias?
Good trading.
You couldnot be more wrong. I am just interested in others people method and if asked specific question I will answer it. I am just puzzled what was a purpose of you posting here that you make 200% a year. Should not you expect that someone will ask about your method and how you have achieved such great return? So is there anything specific like how far till exp, and such you would like to share ?Quote from dreamer:
*Chuckles*
Sounds like you want something for nothing, Walther. Do your study and homework. The answers are out there. Think outside the box. I have not found the answers in any book though I have studied many.
Walter
Dreamer -
Hopefully you didn't interpret my post to you as either acrimonious or inaccurate - since that wasn't my intent. I wanted to understand where you were coming from.
For me, definitionally, a real "hedge" always sets a maximum limit of risk. Tactics to partially mitigate risk by generating some additional premium may play into an overall trading strategy but aren't hedges because maximum risk is still effectively unlimited (ignoring for a moment the absolute truth that selling a naked put isn't really "unlimited" risk since the stock price can't go below zero).
I was simply interested in your assertion that a portfolio of naked options could be managed risk free. Because I've never come across any way of doing that. Diversification, selling premium on both sides, etc. can be used to reduce risk, but I can't see how they (or at least they alone) would make the situation risk free.
Any example you'd care to offer would be of interest.
Thanks.
Hopefully you didn't interpret my post to you as either acrimonious or inaccurate - since that wasn't my intent. I wanted to understand where you were coming from.
For me, definitionally, a real "hedge" always sets a maximum limit of risk. Tactics to partially mitigate risk by generating some additional premium may play into an overall trading strategy but aren't hedges because maximum risk is still effectively unlimited (ignoring for a moment the absolute truth that selling a naked put isn't really "unlimited" risk since the stock price can't go below zero).
I was simply interested in your assertion that a portfolio of naked options could be managed risk free. Because I've never come across any way of doing that. Diversification, selling premium on both sides, etc. can be used to reduce risk, but I can't see how they (or at least they alone) would make the situation risk free.
Any example you'd care to offer would be of interest.
Thanks.
Quote from ArchAngel:
Dreamer -
Hopefully you didn't interpret my post to you as either acrimonious or inaccurate - since that wasn't my intent. I wanted to understand where you were coming from.
For me, definitionally, a real "hedge" always sets a maximum limit of risk. Tactics to partially mitigate risk by generating some additional premium may play into an overall trading strategy but aren't hedges because maximum risk is still effectively unlimited (ignoring for a moment the absolute truth that selling a naked put isn't really "unlimited" risk since the stock price can't go below zero).
I was simply interested in your assertion that a portfolio of naked options could be managed risk free. Because I've never come across any way of doing that. Diversification, selling premium on both sides, etc. can be used to reduce risk, but I can't see how they (or at least they alone) would make the situation risk free.
Any example you'd care to offer would be of interest.
Thanks.
Your post to me was not acrimonious or inaccurate and I apologize if my response gave that impression.
I also never said that my portfolio consisted of only "naked" options. I only stated that I initiate only naked option positions.
Anything that can mitigate your losses can be considered a hedge, whether paritial or total. In some cases, a hedge can even profit your position beyond protection.
Quote from Maverick74:
Dreamer, You Join ET and in 3 days you have 14 posts on the wonders of selling options and how easy it is and how much money you are making. Every post sounds like an infomercial. At one point are you going to give everyone on here your 800 number, your website, or sales pitch.
You know whats funny is there are over 1,000 get rich quick schemes on the internet that deal with selling options. Any countless and countless of other infomercials on late night tv talking about the virtue of selling options. Now why do you think that is? And why do a majorty of them get shut down?
You know Wade Cook made a nice dime espousing selling options before they sent him to prison. I guess it really is that easy afterall. I mean if a former cab driver from NYC can find the secrets to selling options and making 15% to 20% a month, then I guess anyone can do it. Hell, it's like writing a blank check right. You write the check and then collect the cash. And the beauty of it is that you can just keep writing them. I think you just found the secrets to wealth my friend, I would keep that gem to yourself.
That is the best thing I have read- so well said - at the end of the day if you aren't right....
But hey Where do we send the check lol
Quote from Frederick:
That is the best thing I have read- so well said - at the end of the day if you aren't right....
But hey Where do we send the check lol
Quote from Mispe:
May be all that is a joke Dreamer
and the answer is in your nickname ???
__________________
Mispe
The best thing that can happen to a different idea is an audience of closed minds. Ignorance breeds ignorance.
Kind of like the old "earth is flat" idea.