Selling puts to enter?

Can you tell a little bit about your experience? Why did you chose that strategy over other strategies for example with a longer DTE?

 

Not if they are cash secured. Sure, there is some unicorn scenario where vol goes from 10 to 400, but as a rule it's lower risk if cash secured.

Some vol-series are tighter (notionally) than the underlying shares (AAPL pre split).

 

Correct. I was being overly brief. Thank you.

 

FYI: in a standard cash account the cash requirement for short-selling a Put is Strike - Premium.
It's also called "CashSecured Put".

 

In a CashAcct the ROI% calculation for 1 ShortPut contract is as follows:

Code:

  Investment = (Strike - InitialPremium) * Multiplier

  Credit     = InitialPremium * Multiplier

  ROI%       = Credit / Investment * 100

Multplier is the "lot size" for 1 contract, ie. usually 100.
In this context (ie. short selling), the InitialPremium can also be called "Credit".
The whole thing is usually called "CashSecured Put".

 

@thecoder is back and apparently on his best behavior.

 

God damnit, really? I thought we had seen the last of "the Fairput™" How on earth do you guys sniff out these returning posters? I am bad at that.

 

Here is another one for you. margin_gamble is

Spoiler

fibo_trader

 

How do you KNOW this? How how?!? GAH! I mean, the best I can do is sniff out posters who are obviously previous nicks, like monobrowtrading. But I have no idea who they were in the past.

 

They have the same writing style. For example,
https://www.elitetrader.com/et/thre...antediluvian-times.331477/page-2#post-4837929

https://www.elitetrader.com/et/thre...g-the-bear-be-dead.368746/page-2#post-5645927