Yes, it was a change made last year. Just look at how Max is reaping the profits from delta-hedging short puts on the ES.
Month Return YTD Assets Jan -4.50% -4.50% $113,000,000 Feb -1.70% -6.12% $96,000,000 Mar -5.10% -10.91% $93,000,000 Apr 0.85% -10.15% $75,000,000 May 1.05% -9.21% $70,000,000 Jun -0.70% -9.85% $70,000,000 Jul 0.01% -9.84% $55,000,000
This is a stupid post. Calling on SEC to come in! This is what they would do: NO PREMIUM selling for overage Joe. The only area I know of where common people can make their cut, doing what the sell side does (which nothing than just sell and wait). The idea of selling puts (even the naked) is a money maker, because time and prob is the favor of writer, and because pros do it. Average joe rides their back.
This is a good idea! Apply money management from the outside (I assume you understand what the last sentence means). And you will make a lot of money.
Psst! And to make lots more money go ahead and sell the OTM calls, too. Shhh! Let's keep this quiet and to ourselves...
When you can't respond intelligently then you resort to personal attacks. Is it a case of shadenfreude by those who fail or cannot make profits selling OTM puts and hedging? This WAS an intelligent discussion with both sides being ventilated but when some can't deal with the issues they rant and vent their frustration. C H I L L.
Moron, the SEC should come in when fund managers mistate the risk of their portfolio and tell teh average JOE that selling naked options is not that risky at all because all you have to do is roll to the next month. If you think the SEC has no jurisdiction you are quite wrong because any fund holding themselves out and discussing performance and risks is liable for fraudulent claims or inaccuracies. Please give me your wisdom how selling options has a higher expectancy or probability over buying them. Wouldn't we all be selling options then and no one would be buying.