Ring the bell we have a winner. I960 is a buyer of the options I'm selling. But remember if you sell a straddle and then put on a hedge that is...
Buyers are not stupid. the question to ask yourself is why are they buying those otm strikes that seem impossible to reach and never go into the...
In your example you used mini SP500 futures contracts and options on those contracts. I don't trade futures for index exposure, but I will trade...
I don't think anyone is advocating or mentioned selling puts against emini sp500 futures. 60562"]Good to see you back. I think I remember you...
Lol. You still have to be able to execute. :)
It doesn't work for everyone and certainly not in every market condition.
In regards to "why not just go long?" Because someone is willing to pay me to go long at lower prices. Less risk. If the stock continues to go...
This thread is getting silly. I post a strategy that has been successful ytd for me and over many mrkt cycles and what do I get... A bunch of nay...
If you are trading the index than yes selling volatility when it is historically low doesn't make sense. But there are a ton of stocks with high...
Part of the pricing model with options includes IV or implied volatility with a certain period of time. It doesn't predict direction of price,...
It is easy, but guys like you want to make it difficult. Forget about deltas and gammas. All i care about is the probability of a certain strike...
In my example I was using 100% utilization. So approximately 50k principle gives me 100k buying power. I've never traded the minis but the spy...
Well again, I am not trading one concentrated position. With 10 positions, if one goes bad that is only 10% of my capital tied up until I can...
All good points. If options are priced correctly, they will reflect the implied volatility. One thing I did not mention is that I do not like to...
Good question. So if I had 100k of buying power and I sold puts on stock where if assigned equalled 100k, but because of the gap down my...
Yes as long as I manage my margin correctly. Also keep in mind selling calls against stock can reduce margin calls. If you ever found yourself...
Remember Im selling two standard deviations away to begin with so if the stock moves that much on all positions, I'm theoretically flat or have...
Remember my positions expire within 4-5 days. Plenty of time to react to events and changing market conditions. 2008 wasn't a problem. Look at...
Am I really concerned about the rate of change in the "price of the option"(Gamma) or how much an option will move (Delta) when the only thing I...
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