So it finally happened.

Discussion in 'Options' started by fbirdien, Nov 12, 2009.

  1. Not one?

    Do you trade in a closed room?

    Mark
     
    #41     Nov 14, 2009
  2. LTD4U

    LTD4U

    Do you mean NAKED? Or do you include all net premium sellers like income strategies?

    To me selling options is the only profitable strategy in the long term.
     
    #42     Nov 14, 2009
  3. Is it possible to gain over 100% with CCs in several months? If you did not see it would you believe it? If some one showed you the account would you believe it? Would you walk away with the money and say you were a successful premium seller? Or would you keep doing what you had been doing and continue to be a successful premium seller. Just because you never saw something doesnt mean it doesnt exist.

     
    #43     Nov 14, 2009
  4. nO0b

    nO0b

    A 27% loss in your account on a reasonably random trading day probably means you're betting way over your head.

    Having that much at risk would imply you're a heavy favorite in the bet (around 64%) even if we assume a 1:1 payout. I don't know what position you had on, but my guess is you had no where near that kind of expectancy...

    Sorry you took such a loss, but you need to be able to identify and quantify your risks much more precisely, or you're just punching your ticket on a fast train to the poor house... :(
     
    #44     Nov 15, 2009
  5. Cover CALL == Naked Short PUT

    So, naked or not, options writers almost always have bigger risk/reward ratio than options buyer. And their single loss can easily wipe many winnings.
     
    #45     Nov 15, 2009
  6. This is a lot of gibburish. I think you're yanking our chains. You need to post actual positions not B/B1 stuff.
     
    #46     Nov 15, 2009
  7. I think he is trading with SPX as underly?:confused:
     
    #47     Nov 15, 2009
  8. mike007

    mike007

    I think that many ppl have the wrong or misguided information on what premium sellers are. I dont even know, but when ppl ask me how I trade, i dont tell them i am a premium seller. I tell them i am a option spreader.

    Not in ref. to CC, but I can sell options in a spread have have less risk than buying naked options with higher probabilities. Risk 1 to make 1.
     
    #48     Nov 15, 2009
  9. I think DIA is the underlying. LoL, stop guessing and wait for OP to respond.
     
    #49     Nov 15, 2009
  10. MegaDeth

    MegaDeth

    Curious how you have a risk/reward ratio of 1/1 with a higher probability of reward ...
     
    #50     Nov 15, 2009