Besides your in depth research regarding the market not trending, what edge do you have selling what a lot of professional traders are buying? You mention that all markets don't go down at the same time, which I agree with. However, what happens when one of the markets you are short goes down a lot further than the premium you collected from the others?
I already told you, I'm going to cover when it goes in the money at a loss. That's why I'm going to short them pretty tight. Maybe 3%. I didn't say all mkts can't go down at the same time. I said all mkts can't always go down. When you're trading wheat corn and beans they probably will all go down at the same time. Keep in mind, this is my most conservative strategy ever. You ought to hear some of my aggresive strategies.
Sorry, I missed the sarcasm the first time I read this thread through. Describing a naked option selling strategy with the defense being covering at a loss as a conservative strategy is obviously a joke.
It's not a joke. I just wanted to run it by spidro and the rest of you. Sometimes I can't see the problem. I think the "eating peanuts, shitting elephants" kind of summed it up. That's the second time I posted on this forum and somebody asked me if it was a joke. But if I can find a good market for elephants...
One of the really serious problems with naked put selling on equities is that when very bad news hits your underlying, you end up eating shit (buying it).