You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
What are the best markets to sell options
- Thread starter lasner
- Start date
None.Quote from lasner:
I was wondering what you guys thought were the best markets to write naked options in commodities.
Never ever sell naked options.
If you don't know how you're endangering your money maybe you'll have a painful surprise.
If you really know how you're endangering your capital you will not endure the emotional threat and the scare will appear and then you will not trade like you had planned. This leads you losing money.
To hold emotional threat up when you're exposing your money means, necessarily, controlling your risk.
Sugar
Oh, yes, of course!Quote from lasner:
I'm not planning on holding on to the options if the trade goes against me. I' m planning on exiting the trade when the price of the option doubles
What has everyone in the option markets been thinking all this time? You can just get out whenever the price goes against you. Markets never gap, IV never spikes, there is continuous and perfectly linear price movement at all times.
My favorite equation of these amateur "traders" is Selling Naked=Income.
Quote from lasner:
I'm not planning on holding on to the options if the trade goes against me. I' m planning on exiting the trade when the price of the option doubles
Sometimes you cannot get out, what if the market gap downs.
Its better to go with put spreads as someone already said above.
Quote from Prevail:
the odds of an es option doubling is relatively high. you have to use a 4 or 5 times multiplier to keep from noise knocking you out regularly. then you have to decide which side you are on in the positive expectency debate.
What do you mean a 4 or 5 times multipler ...you mean exit when the option price goes up 4x.
It seems like the odds of most options doubling is relatively high