tiny premiums. if the price rises just .5% ur screwed . the premiums are so tiny to make it worthwhile
who is dumb enough to sell weekly calls on SPX/ES
- Thread starter tradelosses
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If they are so dumb to sell them, does that mean you are super smart and buying them all?
But I do agree I would be hesitant when working with very small premiums. But if it's a covered call then it doesn't matter
But I do agree I would be hesitant when working with very small premiums. But if it's a covered call then it doesn't matter
Exactly. If you think that some of the most traded options in the world are mispriced than you have a spectacular buying opportunity! Or it could be that thousands of experts in options who trade in these products every day know a little about what they're doing. In general I've found when my trading insight relies on everyone else in the market being a complete imbecile, then I'm the complete imbecile.
I always sell new contract highs in all the Indexes right now, guess I am dumb as well. I been doing it since mid 1991, guess I been dumb since then as well. Nothing wrong selling Call credit spreads in SPX so long as you are wise on how to do that. Guessing those that do so are wise to the risk or they won't be around trading for long. But it makes for a good post on what majority of folks not doing.
You all have nice weekend.
You all have nice weekend.
Whoever was dumb enough to do it just as you posted has made about $1,000 per contract today. Unfortunately, I was too smart for that.