Selling puts

[riskarb]

Quote from SumJurk:

Then what the hell are we talking about, dude. This thread was about selling 125 puts with $50,000 in the account.

Take my advice, even if your broker is crazy enough to let you, don't do it.

As, far as I'm concerned, this thread is closed. Cheers...

Man, sorry, but you're one step away from a telethon... We were talking about the HAIRCUT, not the MERITS of the position! COMPRENDE?

Please roll over until the urge to respond subsides, it's not worth the effort to read it.

riskarb

 

[SumJurk]

Quote from riskarb:

You're kidding, right? Let me into that put sale at 10, would love to bank the four handles from 10 to 6.

riskarb

Sorry, replace the word "put" with "stock". I think you got my drift, though.

I edited the original post.

 

[SumJurk]

Quote from riskarb:

Man, sorry, but you're one step away from a telethon... We were talking about the HAIRCUT, not the MERITS of the position! COMPRENDE?

Please roll over until the urge to respond subsides, it's not worth the effort to read it.

riskarb

Are you on the right thread?? The dude never said anything about doing a scalp trade. It sounded like he wanted to hold it for awhile. (even though I still wouldn't recommend a 125 lot on a scalp)

So, here's my final response to NasdaqTrader. If all you have is $50,000, I wouldn't recommend a 125 lot position. You can lose a big chunk of your $50,000... real fast. Good Luck...

 

[riskarb]

Quote from SumJurk:

Are you on the right thread?? The dude never said anything about doing a scalp trade. It sounded like he wanted to hold it for awhile. (even though I still wouldn't recommend a 125 lot on a scalp)

So, here's my final response to NasdaqTrader. If all you have is $50,000, I wouldn't recommend a 125 lot position. You can lose a big chunk of your $50,000, real fast. Good Luck...

He was asking a margin question(haircut) for an equity option position. I have no idea why you brought the holding period into this discussion, but it's a free country. Scalping or swing trading the position has no bearing whatsoever on the haircut, which was the question posted by NasdaqTrader.

riskarb

 

[SumJurk]

Quote from riskarb:

He was asking a margin question for an equity option position.

No sh**,...he wanted to sell as many options as possible with a $50,000 account. Not a good idea...

 

[TempusFugit]

Quote from SumJurk:

No sh**,...he wanted to sell as many options as possible with a $50,000 account. Not a good idea...

I think you're setting up a straw man to knock down...in my reading he never said that he wants to sell as many as possible; he just wants to understand what is possible.

 

[SumJurk]

Quote from TempusFugit:

I think you're setting up a straw man to knock down...in my reading he never said that he wants to sell as many as possible; he just wants to understand what is possible.

Okay, if he was just curious and had no intention of selling 125 naked puts with a $50,000 account, then I'll just say "fuggedaboudit!!"
...lol

 

[iceman1]

but I thought the market was enough of a challenge without having to add stress to one's life by picking fights with other traders who are essentially strangers... seems like there is no upside. Bad R/R. It is a lose/lose proposition....

... kinda of like arguing with/debating some women!


ICe

 

[lindq]

Quote from NasdaqTrader:

She was writing naked calls,which is something i would never do.But selling puts on stocks that you wouldn't mind owning at the strike price,if you were assigned,seems like a great and simple strategy.

Wrong on both counts.

1. It isn't great.
2. It isn't simple.

Short puts look just wonderful on paper, until the market or the stock falls away from you - which WILL happen - and you need to deal with the consequences of the fact that you are now holding a bunch of shit that just warned for the next YEAR and you are hugely in the hole, and you risked all this for a few pennies of premium.

Unlimited risk for a very small gain.

Do NOT sell naked. It is one of the few games in the market that can quickly clean your account, especially with the threat of terrorist actions overhanging the market.

 

[SumJurk]

Quote from iceman1:

But, I thought the market was enough of a challenge without having to add stress to one's life by picking fights with other traders who are essentially strangers.

I wasn't trying to start a fight, dude. I made a simple post about my experience, and this is what I get back. How would you have reacted?

Quote from Hello_Dollars:

That's the most ridiculous thing I've read on ET today, which is saying a lot. You have absolutely no idea what you're talking about, thus explaining the draconian trading restrictions your broker had placed on your account. Obviously, it was for your own protection and you might want to consider sending him some flowers.

Quote from ktm:

Yeah, that's hilarious. "Changed a little since then"? You bet it has. I guess there's probably still a broker or two out there doing that, just as some people use tomorrow's paper on the front step for stock quotes.

Quote from riskarb:

Take your hand off your c*ck for a second... You now stipulate "after the crash" to make your argument, while you're still talking directly out of your ass.