put writing = collecting free $$$???

Discussion in 'Trading' started by ASusilovic, Jun 26, 2007.

  1. You know we are close to a top, when someone gets the idea to sell spoo puts AFTER the mkt has gone up for 4 1/2 years.
     
    #21     Jun 26, 2007
  2. noddyboy

    noddyboy

    But that is when it is risk free! When it has already gone down that it CANNOT possibly go down anymore!

    :confused:
     
    #22     Jun 26, 2007
  3. RL8093

    RL8093

    This reminded me when CNBC started to run education sessions on the benefits of shorting the market. IIRC, this was after the mkts had dropped like a rock and many people had lost tons of money (middle 2002). Teach 'em how to short just when the mkt is about to turn up .....

    On the original post, every time I see the term "Risk Free", I cringe because another noob is about to be fleeced. Obviously, selling options has its place, but it's sure not risk-free....
    R
     
    #23     Jun 26, 2007
  4. umm yeah, writing puts is risk-free. No matter what happens to the market, you won't lose money.

    good luck with your (brief) trading career.
     
    #24     Jun 26, 2007