Writing puts on indexes

destriero said:
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.
More...

Well at least this is on this specific thread for people wanting to know what can happen:
"When naked puts attack. Part 3: Newton's Falling AAPL"
 
destriero said:
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.
More...


I totally agree that hedging is protection, but this should be done in a smart way. You need to be familiar with digits as it is an equal success. If you want to be out of emotion you need to know your risk.
 
I would appreciate your help. I am looking for the name of a very successful options trader. He was selling strangles on the S&P, beating the index for the last 30 years or more. His name escapes me
 
You must log in or register to reply here.
Back
Top