Those who read the thread regularly know that I have whined and complained about work getting in the way of my trading (mostly because I travel alot). Well, no more [okay..., I'll probably still whine and complain, but I can no longer blame the lack of availability of internet service ]. I just signed up with Sprint Mobile Broadband and I can now run the ToS platform on my laptop using wireless internet almost as fast as when using cable modem. The current deal they have is $59.95 a month for unlimited use. You have to pay for the PC card, but you get a rebate that covers the entire cost of the card. Although you are signing up for 2 years, there's a thirty day trial period. So if it doesn't work for you, you can return the modem and stop service with no early termination fees. Service is available in all major metropolitan areas (don't know about those of you who live near the Rockies). This deal does not require a voice plan from Sprint. The main reason I got this service is because of the losses I took recently. In October, I was forced to offset a position on a Friday because I was going to be traveling extensively the next week with no easily available internet connection. If I had had the wireless internet service I would have held on (since I was not quite in my adjustment range even though the market was moving up fast) until Monday at which time I could have gotten out for less or held on longer. A similar thing happened to me in May (although I only lost a little bit). The point is that wireless internet would have saved me many times the monthly cost of the service. However, I still would have lost in October, just less. Just some information for those who are in the same situation (I remember reading about somebody who ran home to close his positions in October). The speed is really quite impressive for a wireless internet service (file download speed is also very good, but upload speed is about 8 times slower).
Now, of course I respect Mav but you're saying Mav is one in a million (or I should say two in a million)???
I sell naked premium successfully all the time. Naked put writing is one of the best and most conservative ways to get a good quality equity position when one wants to get paid to wait for a temporary dip. I know of no other way to get paid a regular dividend without even owning the underlying. That is a huge return on investment. Yeah - I know - the Chicken Little's will say "but the stock could fall all the way to zero" and YOU are stuck with a worthless stock. And that is the fallacy. It is very rare to get a black swan event where a quality equity's underlying value (book value) suddenly evaporates with no prior warning signs. Price may take an irrational dive relative to book value anytime too but that would be the same senario if you owned it outright anyway. Even wipe outs like Enron and others had warning signs. But basically if you like a stock and want to go long anyway why chase it with limit orders when you can get paid to wait for it to come to you? Irrational fear is the insurance agent's and option writer's best friend and yields the fattest and easiest premium. TS
lol , I wasn't taking about Mav...I was referring to those "successful" naked premium sellers that you mentioned. My point was that some (two) out of 1m are STILL profitable right now...lets ask them again next year
There is NOTHING in the statement that you quoted about which he can be 'proven wrong'. He said that he never sells naked premium. That is apparently a true statement. He also said that he believes bad traders sell naked premium (to compensate for bad trading) and that good traders can build solid positions without resorting to selling naked premium. Those are opinions. How can those statements be 'proven wrong'? He didn't tell others not to sell naked premium. Mark
I think Mav has it wrong. No one is looking to copy point for point what he trades and how he does it. we just want another trading perspective or approach using different strategies. I have laid out how I trade SPX spreads and I do not think anyone here trades them the way I do. So the we are asking MAV just the basic ideas, not his system or blueprint . Just like Murray lays out in general his diagonals. No one is lining up to copycat, just learn . And if we can get another dip I can grab some Dec put spreads
You are not serious are you? I can't even begin to plug up all the holes in this post. Phil, where do you get these guys from?
I didn't want to be a copycat. My interest is like a detective, to discover the whole truth from the partial facts. BTW I don't think that mav makes money "consistently", but I do believe he makes good money on average.
Mav, You are contradicting yourself. Did you mention that there are no good strategies, but only good traders? No strategy has "postive" expectancy, and all options are effectively priced. A naked writing has the same expectancy as other strategies. Why can't a good trader make this strategy work for him? In option trading, there are many ways of making or losing money. Phil makes credit spread a working strategy for him. Sailing has diagonal. TS claimed naked writing works for him. Whats wrong with his statement? And I do believe a naked put has a positive expectancy if you do it right, though I don't use it anymore.