Wiped out selling naked puts with no stop loss or credit spread

[JSOP]

Is the drop in premium you talk about mostly due to the low-vol environment?

More like reduction of the market, less market-makers.

 

[JSOP]

The problem was not them not happy. Lynch himself pointed out a fly in the ointment. When he would have a setback, for example, the money would flow out of the fund through redemptions. Then when he got back on track it would flow back in, having missed the recovery.

This is the very definition of Buy High Sell Low:

• Buy High, Sell Low: Why Investors Fail

Peter Lynch should put a clause in his funds that allows fund manager the discretion to lock down the capital and forbids investors from taking money out like that guy in "The Big Short" did with his fund. Imagine if all the investors took their money out from that "The Big Short" guy before the mortgage crisis meltdown materialized. Sometimes you have to rule with an iron fist. LOL

And this is WHY I NEVER take other people's money to invest especially not from my family/friends.

 

[Kim Klaiman]

Peter Lynch should put a clause in his funds that allows fund manager the discretion to lock down the capital and forbids investors from taking money out like that guy in "The Big Short" did with his fund. Imagine if all the investors took their money out from that "The Big Short" guy before the mortgage crisis meltdown materialized. Sometimes you have to rule with an iron fist. LOL

And this is WHY I NEVER take other people's money to invest especially not from my family/friends.

Why would he? If investors ar their own worst enemies, why would Peter Lynch care? It's not his job. His job was to provide the best returns. Those who were smart enough to stick around were greatly rewarded. Those who jumped in and out turned out to lose money.

 

[tradingjournals]

That would depend on your clearing firm but in most cases ES options/SPAN margin , is very similar to Portfolio margin. Reg-T vs SPAN, SPAN is much better,

I have always wanted to know what it looks like if one were to have a look the customer accounts at a given brokerage from inside the house. The reds could be as far as the eye can see, the frequencies of blow ups rising at market retreats, and the possible envy of the employees at the sight of the rare green and rising accounts paying for some of the income of the employees. The important part of the income could however be from those who come, replacing those who went, before they go themselves. Continuous recruitment could then be an important function in a brokerage business.

 

[JSOP]

Why would he? If investors ar their own worst enemies, why would Peter Lynch care? It's not his job. His job was to provide the best returns. Those who were smart enough to stick around were greatly rewarded. Those who jumped in and out turned out to lose money.

Oh yes I forgot Peter Lynch doesn't need the capital to create the returns unlike that guy in "The Big Short"; he's not doing those "all-in" investment like the credit swaps.

 

[TrustyJules]

What happened early February was not a black swan event. It was a simple market correction of which there are a couple per year on average.