Buying options is can be just as risky as selling options because of the margin is handled differently for both strategies. For any particular call/put contract - you may be able to buy 1000 contracts but you may be limited to selling only 10 contracts due to margin restrictions. You can blow up either way if you don't know WTF you're doing.
What a hysterical thread, I am sorry i didnt read it until now. I have seen the same sort of thread on ET a few times during the course of my membership here. Very entertaining stuff! Keep on sellin that cheap stuff, it can never hurt you!!! LOL
It is a great thread to fade over time perhaps... Honestly in this environment I would not even sell naked puts given the downward bias lately. If you put a gun to my head to sell naked options I would sell calls only for right now. At least I would not have to worry about a vol explosion in most cases. market looks like it has more downside to sideways chop in it so calls seems like a shorter sword.
Rule #1 in Trading: Pay attention, especially to STOP prices. Not 1250. But, we shall see. I aim to make money and entertain you at the same time. Be good to yourself, chill.
Watch what this guy does vs. what he preaches to others. He sells premium although his outlook is higher vol. If he were to apply to his trading the advice he gives to others, he would be buying puts instead of selling calls, as both are negative delta and long puts goes with higher vol. See, deep down he believes in positive theta even if his forecast is a higher vol!
Man the stupidity continues. I never said I sell premium. Try and read what was written. I specifically said in my post if I was going to sell options naked I would sell calls instead of puts as the risk seems higher to the downside now. My answer was in the context of the discussion of short option selling not giving trading advice to others based on how I trade. It was pretty clear even you would not have missed the context. I already said a few times I do not preach selling naked options to anyone. People here have a problem following the line of conversation which is typical of ET. And I do believe in positive theta as many who know me know of the FLYs I trade which are positive theta.
My post said if you put a gun to my head to sell short options I would sell calls versus puts as the market seems to have a bias lower lately with sharp drops. Since most people here misunderstand everything let me be clear that I do not advocate selling short puts or calls at all. I was answering in the context of the discussion. If anyone was dead set on selling any naked options I would advocate spreads to reduce risk as long as they are smart about % of account used.