Seriously, the reason of my post was to find more infomation about the story i picked up on CNBC, not to get ridiculed for not knowing about it. I didn't know if they were talking about Joseph Lewis, or some random guy. Easy on the response man, not all of us spend our lives looking up news on the computer. That's why we come to ET, cause the nerds do it for us. P.S. Selling naked puts is still not a good idea. Unless you want to go broke if another 9/11 happens. Respect the black swan everyone.
maybe you could explain how selling puts is any more dangerous than being long the same amount of stock?
well said good sir. I too have been both impressed at Landis82's knowledge and stunned by his brutality.
very well said, I would like to quote this on other threads... one thing is certain, the market conditions are really frustrating us all.... even those making money with all these scalping opportunities... I know, because I spoke to some of them......ever hear of nervous profits? Yeah, there really is such a thing...
Here's the best advice you'll ever get on these boards. Take that damn stock of your screen. Dont look at it, dont think about it, pretend the damn thing doesnt exist. While you're at it do the same for C, MER, LEH, WM, and every other freakin financial out there. If you watch these things and see it keep getting cheaper, you will sooner or later pull the trigger on the wrong one, at the wrong time. Some will survive and soar again others will turn into the tombstones of this credit crunch and non of us know which will be which. You dont need theheadache. I promise you there are countless traders wishing they hadnt been watcing Bear Stearns when it looked so cheap at 60.
Send that to the Journal of Finance to publish, its a breakthrough, did you seriously think that anyone does not know that...
the op does not seem to know it. "P.S. Selling naked puts is still not a good idea. Unless you want to go broke if another 9/11 happens. Respect the black swan everyone. "
In response to where to buy bear, run a chart back on Refco and Northern Rock and decide where you would have bought them. This smells the same, lots of chat about solid parts of the business and how the stock is undervalued, if the trust is gone the cash is gone.
I think its funny that people try to equate selling puts as the same as being long a stock. It is if you sell the put short term, but most people play the experation game, selling puts untill they go to zero. Yes selling a put will give u a delta usually a percentage of being long a certain amount of shares, but that delta changes, especially close to expiration. Puts that are cheap, like the OTM ones, will USUALLY go to zero, but you have to sell many of them if you're wanting to make real money. Even if you sell put spreads to lessen your risk, you always are looking at a senario which risks way more than you're willing to make. Owning a put means that you get more and more long as the price starts to go down. Many people I know make a lot of money using stratagies of selling calls and puts, and sitting on them. Yes many of these plays are (RISK 10 units, REWARD 1 unit), and the key to making money playing this game, is making 10 times so that you can afford to get burned 1 time. Many people I know still haven't been burned and continue to make money, but sometimes that one time can make up for all of the money you've ever made. From my limited experience, I suggest that you never stay naked short calls or puts, unless you're willing to take the risk of the 1/1,000,000 chance happening.