Any option sellers, here on Elitetrader?

Discussion in 'Options' started by crgarcia, Jul 14, 2008.

  1. I want to share some ideas/experiences, specially on hedging your short options.
     
  2. I don't do it like I used to, I try and pick my spots better now. I had a really bad time with it once and I get a little gun shy now. What are you looking at?
     
  3. patrickj

    patrickj

    I write alot of options on futures and equities. Most of them are covered. What would you like to know?
     


  4. How are they covered? I write credit spreads but that is not 100% cover. I write optioms only in FTSE (Z). I would like to improve protection. Thanks
     
  5. There are tons of people on ET who sell options, but it sounds like you are referring to those who do naked sells.

    Many here who used to do a lot of selling have moved to other avenues. It becomes necessary to shift strategy when the prevailing conditions no longer support the current trades.
     
  6. You should buy Cottle's online book at
    www.riskdoctor.com and read the sections
    on gamma scalping and adjustments to
    delta neutral. Also read his good advice
    on why putting in the wings is an extremely
    goodbidea. Although, I mostly ignore it for
    future options that trade 24 hours such as ES.
     
  7. I'm curious to find out if anyone else has held on to a covered call strategy this year. I have and I've stayed consistent writing calls on etf's as well as certain individual stocks.

    What are your conclusions?
     
  8. you mean buying in the wings?
     
  9. dmo

    dmo

    Buying IN the wings implies you were short them. I think Cottle's idea is to be long the wings.
     
  10. donnap

    donnap

    :D
     
    #10     Jul 30, 2008