Writing puts on indexes

[Dolemite]

You got it wrong. In his terminology more "Hedging"

 

[FibonacciNinja]

View attachment 192895

"I'm like the rest of you, I put my hedges on one leg at a time. But once they're on, I make gold trades."

"I got a fever... and the only prescription, is more hedging."

 

[destriero]

Walken is God. I will never tire of that skit.

 

[silver182]

Well if you liked the 235 strike with those short puts you gotta love it at 216. Double down and sell some more puts. Remember it is only a paper loss unless you quit! (or get a margin call)

Keep in mind timing is everything..when others are running away is exactly when you should be doubling down...green is coming like you would not believe)

 

[destriero]

"911, what is your emergency"

"I'm long AAPL shares and short AAPL puts as a hedge"

216 last.

 

[destriero]

Alas, poor Yorick... I suspect that we shall not hear from him again:

Loss of $3,000 on shares.
Loss of $16,000 on puts.
($19,000)

Nice hedge, Bro. Excelsior!






View attachment 192852

Dude is off $12K on shares. Where art thou, poor Yorick?

 

[sle]

"I'm long AAPL shares and short AAPL puts as a hedge"

Please tell me it's not a real situation?

 

[srinir]

Please tell me it's not a real situation?

It is real and it is spectacular.

He posted statements before quickly deleting

 

[sle]

It is real and it is spectacular.

I am speechless.

 

[destriero]

Please tell me it's not a real situation?

And I quote (@silver182),

"Simply put, hedging is defined as protecting yourself in the case of an unforeseen event is it not?"

He "protected" himself by shorting puts into a long AAPL position... a position derived from a previous put-assignment.

The guy shorted the AAPL *** 235 *** puts for Oct. He was already long 401 shares via assignment before shorting the 235s. He never replied as to why the additional share. Perhaps it was a liquidity test!

IOW, insult meet injury. Then the guy got assigned on the 235s. He's gotta be down something like 40-$50K in AAPL alone.

188 last. IIRC he shorted those 235s at $6.