Selling put options after brexit

[tradelosses]

All of the puts I sold weeks ago that haven't yet expired have surged in value.

Selling weekly ES puts that expire at 1700 for $60/contract seems too good to be true . 16% crash in one week? berry unlikely

That means the market has to fall 66 pts a day for the whole week

 

[Maverick74]

All of the puts I sold weeks ago that haven't yet expired have surged in value.

Selling weekly ES puts that expire at 1700 for $60/contract seems too good to be true . 16% crash in one week? berry unlikely

That means the market has to fall 66 pts a day for the whole week

Dude, that is the same thing as selling .05 puts in SPY. Are you effing serious? Just out of curiosity, what is your day job?

 

[newwurldmn]

All of the puts I sold weeks ago that haven't yet expired have surged in value.

Selling weekly ES puts that expire at 1700 for $60/contract seems too good to be true . 16% crash in one week? berry unlikely

That means the market has to fall 66 pts a day for the whole week

It will probably earn. But it's a tricky position to have.

If you trade it small then what's the point as the return is small. Are you better off doing something else?

If you trade it levered then you run mark to market risk - can you handle that put being worth 500 a contract? What about 1000 contract? That can easily happen.

 

[1245]

Dude, that is the same thing as selling .05 puts in SPY. Are you effing serious? Just out of curiosity, what is your day job?

Looks like $1.20 to me 1.20*50=$60

 

[Niten Doraku]

I will never understand why option sellers become deer caught in the headlights when volatility rises and price moves against them.

OP, what were you expecting to happen? Do you think the market is so inefficient that volatility risk premium is always "overpriced"?

Mind boggled.

 

[Maverick74]

Looks like $1.20 to me 1.20*50=$60

No, $50 in ES is 1 pt or .50 in SPX and SPX is 10 times the premium of SPY or .05.

 

[OptionGuru]

Selling options is like Bambi meeting Godzilla.

 

[1245]

No, $50 in ES is 1 pt or .50 in SPX and SPX is 10 times the premium of SPY or .05.

MAV,

He said he was looking at ES options. One contract at .05 is $2.50.

 

[Maverick74]

MAV,

He said he was looking at ES options. One contract at .05 is $2.50.

Yeah I know but I'm saying it's the same thing as selling .05 and .10 SPY options. Guys like to come on here and act like they are getting a lot of premium by selling 1.00 ES options when in reality, they are selling what we in the industry refer to as teenies or garbage. The CBOE use to refer to them as cabinet trades but those are technically .01. So because ES has a higher multiplier guys like to think they are "getting" something with that sale, when in reality, they are selling garbage.

 

[TradeCat]

Speaking of garbage, I hear junk bonds are back in! Isn't there a solid ETF which tracks junk bonds?