Writing options for a living

Plenty of option writers right now who thought they could do it for a living are now probably thinking about whether life is worth living............

As others have said, it works great, like owning a printing press, until it stops working.
 
Its just like owning a car.

When you own it you can't forsee an accident, the longer you drive it without an accident that more confident and comfortable you get that it is unlikely that you will be involved in one. Untill that fateful day when it does happen.

If you bought basic insurance and it's only minor than you can repair it and drive again alittle out of pocket, if you bought premium insurance then it shouldn't be a problem.

If it's a major accident and you have either basic or premium you can most probably drive it again, unless its a write off.

Now if you were foolish to not get any insurance you will be out of pocket big no matter what, whether it be minor or major and if it's a write off your done for.

When it comes to writing options it seems there is a growing number of learner drivers without a licence and no insurance. Yikes!
 
Quote from falcon:

Its just like owning a car.

When you own it you can't forsee an accident, the longer you drive it without an accident that more confident and comfortable you get that it is unlikely that you will be involved in one. Untill that fateful day when it does happen.

If you bought basic insurance and it's only minor than you can repair it and drive again alittle out of pocket, if you bought premium insurance then it shouldn't be a problem.

If it's a major accident and you have either basic or premium you can most probably drive it again, unless its a write off.

Now if you were foolish to not get any insurance you will be out of pocket big no matter what, whether it be minor or major and if it's a write off your done for.

When it comes to writing options it seems there is a growing number of learner drivers without a licence and no insurance. Yikes!
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Agree.

Writing options isn't a bad strategy. But it requires constant downside risk management and a strong capital base. It is selling insurance, but when insurance companies do it they diversify and have a strong capital base.

Writing options on 10:1 leverage is stupid. Writing options unlevered can provide decent (but not stellar) returns.
 
Wow, a really old thread, I know, but still very informative and interesting. Maverick74, Dummy-Variable, Riskarb (atticus), and Sle - presumably, you have no reason to share your knowledge, nonetheless it's much appreciated that you do. Thank you.:)

Very good thread.
 
Quote from Soon2Bgreat:

Wow, a really old thread, I know, but still very informative and interesting. Maverick74, Dummy-Variable, Riskarb (atticus), and Sle - presumably, you have no reason to share your knowledge, nonetheless it's much appreciated that you do. Thank you.:)

Very good thread.
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Agreed.
This has been the best week of my life reading the entire 170 pages from beginning to end.
People come, people go, what's essential stays.
Best to all who survived and still trade.
 
Quote from AK100:

Plenty of option writers right now who thought they could do it for a living are now probably thinking about whether life is worth living............

As others have said, it works great, like owning a printing press, until it stops working.
More...

Umm…still doing it and looking at my best year yet.
 
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