Semi Crash is Great for Naked Options Seller - Net Liq Up 70.33% this week

sle · Dec 23, 2018

I am still not sure what exactly OP does or if he's trading IRL. However, there is certainly positive expectation in selling crash puts when crashes are not happening. I'd be reluctant to put all my money in a strategy like that, though.

nooby_mcnoob · Dec 23, 2018

Right, they are part of a portfolio. I'm still up ~15% on the year now, the 300% put was sold and I only risked ~1% of the portfolio.

newwurldmn · Dec 23, 2018

sle said:
I am still not sure what exactly OP does or if he's trading IRL. However, there is certainly positive expectation in selling crash puts when crashes are not happening. I'd be reluctant to put all my money in a strategy like that, though.

It’s all a windup.
I don’t think the OP actually trades a real account.

srinir · Dec 23, 2018

newwurldmn said:
It’s all a windup.
I don’t think the OP actually trades a real account.

How is it possible even in Sim account? I just checked the data for SPX for Friday expiration. 1 delta puts quoted around $2.05 at the beginning of the day with the strike price of 2420. SPX closed at 2416

Dolemite · Dec 24, 2018

The reason I posted the risk graph of Sweet Bobby on page 2 is because that is not a naked option risk graph. That is the graph of someone that owns more long puts than what is sold. I am not trying to nitpick here, but posting that you returned 70+% just selling naked options is not accurate.

Sweet Bobby · Dec 24, 2018

Dolemite said:
The reason I posted the risk graph of Sweet Bobby on page 2 is because that is not a naked option risk graph. That is the graph of someone that owns more long puts than what is sold. I am not trying to nitpick here, but posting that you returned 70+% just selling naked options is not accurate.

You are wise! It’s good to see someone who understands the risk profile. You are absolutely correct that I have longs as well to go with my boat load of shorts.

Sweet Bobby · Dec 24, 2018

I’m now up 148%! And yes, I trade real money in a live account. I trade every day, including Christmas Eve! Merry Christmas to you all.

nooby_mcnoob · Dec 24, 2018

Nice, congrats.

ironchef · Dec 28, 2018

Still up 148%?

Windlesham1 · Dec 29, 2018

There are a lot of naked options sellers in the shoe repair business, driving Ubers,sweeping the streets. I thank them for their fleeting appearances,no doubt the ranks of Uber etc will be swelled in January. That 350 point drop in the S&P will have smashed their margin to bits. Ouch- 10 consecutive down days. Is Karen in prison these days-or with Uber?