how to hedge 10MM via options?

Discussion in 'Options' started by itcanbedone, Dec 14, 2008.

  1. i hope she got the smart from someone else in the family.:p

    ...to your original question...you are only asking how to make money in the stock market. you aren't asking about options. if it were that easy to just print money in the market then people would give you a simple answer.

    btw...why do you write like you are 6 years old?
     
    #11     Dec 15, 2008
  2. You're a lazy ingrate. You didn't even bother to clearly formulate your question

    thanks for that classic line.

    i believe first time i've been onlineharrased.

    no need to lecture me on silver platter issues or my lack of grammer and the like.

    thanks elitefader.com
     
    #12     Dec 15, 2008
  3. Seeking alpha requires excellent stock-picking skills. You cannot get around that.

    If you want to trade ETFs and SPY options, then there is no opportunity to use stock-picking skills. Instead, you would have to become an excellent market timer.

    VIX options are much more sophisticated and are not appropriate for seeking alpha. Forget about those.

    Bottom line for me: This is an impossible project and if your niece were to explain to the teacher that it is far too risky to seek alpha using options, she would show more knowledge than anyone else in her class.

    There are appropriate option strategies one can use to seek above average profits with limited risk. But, the problem, as you amended it, is to earn 'alpha.' That requires the ability to know which stocks are moving in which direction. Buying options requires being a skilled market timer. Selling naked options is out of the question when you have 100 million dollars [It's the old joke: how do you make a small fortune on Wall Street? Start with a big fortune!]

    There are good option-selling spreads, with limited risk - and I describe them in detail in my book (Rookies Guide to Options), but they are not appropriate for someone who wants to make money from 'alpha.'

    Ciao

    Mark
    http://blog.mdwoptions.com/options_for_rookies/
     
    #13     Dec 15, 2008
  4. is english your native language?
     
    #14     Dec 15, 2008
  5. MTE

    MTE

    Here's the title of your thread: how to hedge 10MM via options?.

    In your posts you keep mentioning trading.

    Do you realize that hedging and trading are two different things? Hedging a 10mil portfolio is a completely different issue to trading options with 5 or 10mil!

    As I said, noone is gonna just tell how to make money trading options or any other instrument.
     
    #15     Dec 15, 2008
  6. Of course no one is going to, far from giving a few advices successful traders are far from sharing strategies or their keys to success, who would give away such valuable information. I consider financial markets fields where you are up to what you do, learn and develop.
     
    #16     Dec 15, 2008
  7. Shit dont complain. heh I think its great, if you teach math and teach it on something fun like options trading etc.. make it fun for the kids they will absorb the material VS handing out a bunch of bullshit dittos off the mimeograph with that fresh scent.

    I hated math in school but I love math now. The irony if only my math teacher could see me today :)
     
    #17     Dec 19, 2008
  8. dmo

    dmo

    Ha ha - you're dating yourself King! I wonder how many reading this never heard of a mimeograph - much less remember that lovely carcinogenic smell.
     
    #18     Dec 20, 2008