my point is...'ya aint gonna live off that measly profit from dat trade'...
Why isn't everybody selling options?
- Thread starter jr07
- Start date
Quote from Martinghoul:
Absolutely true dat... Still, I personally have a strong, enduring and all-consuming preference: I would always be a buyer of cheap gamma rather than a seller of expensive gamma. Possibly because I appreciate the value of the implicit unquantifiable liquidity option.
No condors, as that's, in most cases, a broker-fest, in my world. I buy flies occasionally, but treat them as lottery tix, i.e. I say goodbye to the premium as soon as it leaves my pocket. I have done some 1x2s and ladders, though, but that must have been during momentary lapses of reason.
OK, my inference was on modality. That your otm fly goes negative to gamma approaching neutrality on spot. You started you don't short gamma, which I took to mean at inception, so you're off the hook.
I think I see your point... At any rate, I am obviously a liar, since I have done nasty things like ladders, but I claim temporary insanityQuote from atticus:
OK, my inference was on modality. That your otm fly goes negative to gamma approaching neutrality on spot. You started you don't short gamma, which I took to mean at inception, so you're off the hook.
.ya'll need to be thinking more of selling/writing naked options...that is where the HUGE cash is