The Pros sell naked too and unless you learn to leave your cherished opinions out of the door you'll never become one.
I have been trading for 4 years and professionally for 2. Professionally meaning that I make my living with no other activity than trading/selling options. If you want I can send you privately my website. It has a track records along with trades. Don't worry I am not selling anything. The fact that you have been trading options for many years or have a lot of posts does not make you a professional. You seem to rely on your opinion. It did not work for me, but maybe it worked for you. Not for one second I believe that you were able to increase your equity by buying options if you did. Earlier you stated that Pros do not sell naked, then you changed it saying that they hedge. They do both, but they certainly do not buy options like the OP intends to do.
I don't know why you began a pissing contest. Whose opinion would you suggest I rely on, if not my own? You seem to rely on yours. 1) I was a CBOE market maker for 23 years. To me that's being a professional. I am unimpressed with your resume. 2) I never said I buy naked long options - except for portfolio insurance. Thus, there is also something wrong with your reading comprehension. I constantly remind readers that buying options is a losing strategy for the vast majority who try it. And the OP is entitled to trade as he sees fit. His question did not including anything about the merits of buying options. And a looser interpretation of his question suggests he wants to trade, not buy, options. That's Mech's point of view and although I take the word 'buy' to mean 'buy' and nothing else, people do not always use words that literally expresses what they mean. 3) True professionals - that means people wise enough to understand risk and how to manage it have no need to sell naked options on a regular basis, or in size. As Mech has already mentioned, there is a time and place for almost any strategy and that includes naked selling. Personally, I hedge all option sales with a further OTM buy. That gives me a comfort zone that suits me. It limits losses and that how I trade 4) Just because you adopt some strategy does not mean that 'the pros' do it. Mark
The very first thing you wrote as a respose to my reply was ..."what is wrong with you ?" I was not here to start any pissing contest, nor I care of how impressed or not you are with my resume, nor I am a financial advisor. Just wanted to let the OP know that buying options is not a consistent strategy to make money. At that point you suggested I start my own thread and to state my own opinions. Just because you have been a CBOE market maker and you have been here longer than other people it does not give you the right to be rude and/or it does not mean that you know it all and everyone should take your words like pure gold. So relax. I might be wrong but you seem to have an ego when there is no need to have one. We are not at the CBOE we are not at your house, it is a public forum and I will start my own thread when I say so. What I wrote the OP is accurate and if it is not you are not the options world police. PS: if you want to be the option world police state your performance for the last 3-5 years. Then the stage is all yours. Till then treat others like you want to be treated.
You already said you wouldn't believe it if I told you I made money buying options. Why would I expect you to believe anything? Who is his right mind would produce private trading results for the world to see? Even better why would anyone ask someone else to do that? Do me a favor - place me on your ignore list. The reason I responded to you as I did is because you ignored the OP's question and answered a different question - a question that had not been asked. You think I have an ego problem? Thank you Mark
1) I did not ask you to produce your trading results, just your performance if you come here with the tone " I KNOW IT ALL" The only reason I asked you to do that is because you seem to be here to extend your penis. If you are you need to back up your words. I couldn't care less about you option buying strategy or what you pontificate. First show the numbers, then you can have an attitude. 2) Your first reply to me was angry and rude. You can be all you want but you acted like a jerk. Was it really necessary to be so arrogant ? 3) It is totally irrilevant what I think. If you buy options obviously your opinion/ego is in the way of your trading. Looks like it is as you implied...professionals ( you ) buy options. Get a grip. 4) You are free to ignore me, but I'll decide when to ignore you. When I want your suggestion I will ask for it. 5) After well over 1000 posts you keep writing your name at the end of each post, it is kinda of funny. 6) Looked at your profile, says you write books and you are an Author, Options Educator, go back to your "academic world" and stick with it. It is OK to have an ego and have a little attitude when you can BACK IT UP with numbers ( your market performance, not your trades ). Till then you are just another guy not a guru or a financial expert. If you want somone to respect you have respect for others. Maybe it is about time come down from your pedistal made of your distorted reality.
English is not my first language, but it is yours, yet you cut and paste exactly the things you like and reply to them. I think it is called selective hearing in your language. Also English comprehension is not one of your strongest skills and you are supposed to be an author. It is not about whatever or not you have a performance, it is about the fact that you do have a lot Arrogance with a capital A.
i did not want to start a sh@#$ storm that seems to have developed when I worte buy I meant buy the option/trade or whatever you want to call it. Basically I have found a few stocks that have calender calls with a net debit of $0.00. I have not as of yet been able to get the trade to go through because of the lack of volume on the option. I assume The one I am currently waiting on going through is the following BX calender call sell the Aug 11 call- for 25C buy the Sep 11 call- for 25C. I'm looking at this as a risk free trade (correct me if I'm wrong) and once the Aug option expires worthless just sell the Sep call for whatever it is worth. What I am looking for is, Is there an option screener where you can search calender calls with a small diffrence in price?