who sells those dime puts?

Quote from Maverick74:

That's not the same as risk free. Saying selling a call reduces your risk in the long stock is like saying a helmet reduces risk of injury on a motorcycle going 200 mph.
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Probably a bad example since a helmet doesn't reduce your risk on a motorcycle going 30 mph either. :D
 
Quote from spindr0:

C'mon, don't exaggerate. It's only $495,000 risk on a 5 pt strike.

:)
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Yeah I was really trying to drive the point home and I needed that extra 5k to make the point perfectly clear. :)
 
Quote from stevegee58:

Probably a bad example since a helmet doesn't reduce your risk on a motorcycle going 30 mph either.
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Going to church doesn't make you a Christian any more than standing in a garage makes you a car. :)
 
This dialogue reminds me of the sort of stuff heard before 2008..back when the market was doing the slow grind higher just like now. It was unthinkable that the market could move thru strike prices 5% below or 5% above...then in 08 we saw the market moving thru those levels every other day for awhile..if not a greater range.

Clearly with all the leverage in the system and the fragility of tbtf's, volatility has to be "managed" so as not to create another contagion moment with an even greater concentration of risk spread amongst fewer participants.
 
Quote from denner:

This dialogue reminds me of the sort of stuff heard before 2008..back when the market was doing the slow grind higher just like now. It was unthinkable that the market could move thru strike prices 5% below or 5% above...then in 08 we saw the market moving thru those levels every other day for awhile..if not a greater range.

Clearly with all the leverage in the system and the fragility of tbtf's, volatility has to be "managed" so as not to create another contagion moment with an even greater concentration of risk spread amongst fewer participants.
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Remember Government now has a Limit down 10% on any stock.
 
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