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Quanto said:
Hmm. this is only half of the equation :)
B/c Put buyer risks only the Premium, whereasa you as the Put seller do risk Strike - Premium.
Do the comparision for ATM and see yourself.
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The big difference there is the buyer is realizing losses whereas the seller is only taking a paper loss.
 
wxytrader said:
The big difference there is the buyer is realizing losses whereas the seller is only taking a paper loss.
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I think the correct description would be this one:
The Put buyer starts in Debit, the Put Seller starts in Credit.
Other than that: time will show... :)

You better should do a MC simulation using GBM to prove your claim.
I guess it will come out as p=0.5 :)
I haven't done such a simulation, but maybe someone else has and can tell us more.
 
Quanto said:
I think the correct description would be this one:
The Put buyer starts in Debit, the Put Seller starts in Credit.
Other than that: time will show... :)

You better should do a MC simulation using GBM to prove your claim.
I guess it will come out as p=0.5 :)
I haven't done such a simulation, but maybe someone else has and can tell us more.
More...

Basically it's the maximum pain level where price tends to end up where the majority of options expire worthless.
 
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taowave said:
My bad....I was wondering why you were boasting of the Lotus...

As for trading,is selling a put and taking delivery if wrong the core of your trading?
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Wrong? Selling puts isn't a bullish position, it's a bearish one. They should be renamed bear put spreads when you're short because I am selling a put at the price I'm happy to take shares, and I am expecting to get assigned because I'm bearish on the market. If you are selling puts or calls hoping they finish otm then you are using them ass backwards.

Nobody is making a living off trading if they A) are buying options or entering strategies that don't involve the underlying, and B) using stop losses.

A bull put spread should be you are bullish on the market going down so you go long puts.
 
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If you really wanted the shares,and are bullish,why on earth wouldnt you be trading Risk Reversal over selling a garbage put???

Your ignorance is refreshing
 
taowave said:
If you really wanted the shares,and are bullish,why on earth wouldnt you be trading Risk Reversal over selling a garbage put???

Your ignorance is refreshing
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Where did I say I was bullish? I don't accumulate shares when I'm bullish, I accumulate when I'm bearish. Did they not teach you guys basic finance in school? Are you buying things on sale or do you wait for the sale to be over and pay full price? You always hear that only 2% of traders make money... probably 98% of traders wouldn't agree with my methods so what does that tell you?
 
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wxytrader said:
Selling puts isn't a bullish position, it's a bearish one.

They should be renamed bear put spreads when you're short because I am selling a put at the price I'm happy to take shares, and I am expecting to get assigned because I'm bearish on the market.

If you are selling puts or calls hoping they finish otm then you are using them ass backwards.

A bull put spread should be you are bullish on the market going down so you go long puts.
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Man... I need your pusher contact number, because whatever it is that you are smoking, it's very good!
 
Its beyond smoking shit...He is straight up tripping..

"Selling puts isnt a bullish position,its a bearish one"?

He accumulates shares when he is bearish????


cesfx said:
Man... I need your pusher contact number, because whatever it is that you are smoking, it's very good!
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LOL.....

Show me an account where your imaginary Lambo isnt the bulk of your assets..







wxytrader said:
Where did I say I was bullish? I don't accumulate shares when I'm bullish, I accumulate when I'm bearish. Did they not teach you guys basic finance in school? Are you buying things on sale or do you wait for the sale to be over and pay full price? You always hear that only 2% of traders make money... probably 98% of traders wouldn't agree with my methods so what does that tell you?
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