Strategy: Selling Put Options: The Best Income Method?

Discussion in 'Options' started by botpro, Feb 28, 2016.

  1. botpro

    botpro

    At the moment most technical indicators like MACD show that the market will drop in near-term,
    so going long at this very time is normally not recommended for most of the stocks.
    That's of course also a bad timing for shorting puts of the most stocks and indices...

    Update:
    I think I have to correct the above statement because for example SPY is in uptrend (incl. in MACD) since mid of February,
    so it could be a good time for going long the stock/long the calls/short the puts...

    Update-2:
    The confusion comes if one looks at the weekly and monthy charts... Then it does not look good...
     
    Last edited: Mar 3, 2016
    #151     Mar 3, 2016
  2. botpro

    botpro

    As I told you, I'm not interested in those f'uped opt greeks, just respect this. I have other things to todo.
    Hey, just be happy that the greeks seemingly help you, and keep it just for you. I'm not interested in the greeks. Basta!
     
    #152     Mar 3, 2016
  3. destriero

    destriero


    I was explaining to you that it's retarded to drive at night with your lights-off. Consider my metaphor in the future. If you can't arrive at a price, regardless of how you stress it, then you're driving blind. The mkt says no f*cks given to your MACD BS.
     
    #153     Mar 3, 2016
    i960 likes this.
  4. bruce lee wtf.jpg
     
    #154     Mar 3, 2016
    i960 likes this.
  5. botpro

    botpro

    Ok, come on and show how the greeks will be of any help in the said "no-loss goal" problem situation.
    I'm really very curious about your answer...
     
    #155     Mar 3, 2016
  6. destriero

    destriero


    You'd stated that "it won't produce a loss..." well then why would anyone take the trade as counter-party? You're at Step 1 of a 12-step program and you're conflicted. You just discovered "short premium" and have this mindset that all opshuns are meant to be sold. Yes, we've seen it before and it's comical -- the outcome? Not so much.

    You're looking at the July 90P. OK. Quote the July 97.5P as a proxy for the 90 *IF* PEP were to trade to 91 *today*. No greeks, no GBM, just market-pricing.

    The risk of PEP hitting ninety by JulEx is admittedly low -- ITM prob of 20%, touch probability of 40%. This is based upon statistical-vol, not IV. The issue is not the terminal price, but the route it takes to get there. You will be filled on a market-order if you receive a variation-call and you be forced to cover all of your positions (corr=1) in a similar fashion.

    Don't sell naked puts. Trade defined-risk through spreads. If for no other reason that short puts require variation margin. I am done "helping" you as you're an indignant tool that alternates between thinking he knows everything to knowing nothing at all.
     
    #156     Mar 3, 2016
    i960 likes this.
  7. botpro

    botpro

    Hey desterio, and what about the useless greeks?... ;-)
     
    #157     Mar 3, 2016
  8. destriero

    destriero


    I gave it to you, f-face. I told you it was a 15-delta with a 3-gamma. IOW, ur doomed. Bya
     
    #158     Mar 3, 2016
  9. botpro

    botpro

    Like I said, some useless numbers without any practical use for the problem faced here.
     
    #159     Mar 3, 2016
  10. People have told you or given you information and you argue against anything even though you have a limited knowledge of options and then you ask us to show you or prove to you like we owe you something more. Stop the verbal diarrhea already here with your thoughts and just go make some trades and let the market teach you rather than guess and ignore people here telling you the facts.

    Shit or get off the pot already, just place a trade and work from there.
     
    #160     Mar 3, 2016