Why will this not work?

Discussion in 'Options' started by clell888, Mar 4, 2020.

  1. taowave

    taowave

    As long as you realize you are flipping from short call to short put with no fundamental reason why,take the shot...

    Im also assuming you know your pain threshold and can stick with your plan despite eating 80 points on ..You coukd be down 3k on a fast move

    It's the only way you will really learn what we are
     
    Last edited: Mar 5, 2020
    #31     Mar 5, 2020
  2. ironchef

    ironchef

    Like selling naked OTM calls/puts, should work most of the time.

    Think through the logics, determine under what scenarios this doesn't work and design the next level strategy to handle those.
     
    #32     Mar 5, 2020
    clell888 likes this.
  3. clell888

    clell888

    The start is a short naked call. If I have to it becomes a covered call. Certainly some risk having to buy the stock at some point
     
    #33     Mar 5, 2020
  4. taowave

    taowave

    you need to come up with a better way to hedge......

    Im guessing you are bearish on TSLA at 750

    Are you a Bull at 830??
     
    #34     Mar 5, 2020

  5. Dude, c'mon.

    You're short a naked call -> shares rally -> call doubles -> buy shares (CC) and NOW you're short a synthetic put?

    Brainless.
     
    #35     Mar 5, 2020
  6. taowave

    taowave

    Hes hell bent on this strategy..
     
    #36     Mar 5, 2020
  7. tsznecki

    tsznecki

    WTF are you guys all talking about? Of course it will work.

    @clell888 you need to take out a 2nd mortgage and bet the house on this.
     
    #37     Mar 5, 2020
  8. clell888

    clell888

    Yes a covered call is a short synthetic put.

    Not hellbent on this. Would like constructive input (which some people have given)

    I guess calling people brainless makes you feel good.
     
    #38     Mar 5, 2020
  9. taowave

    taowave

    You have gotten extremely good advice,but you seem determined to disregard it..which is Ok...

    Just trade small




     
    #39     Mar 5, 2020
    ironchef likes this.
  10. ironchef

    ironchef

    His input is very constructive:

    You now own a short put with no premium received, no win, lots to lose.
     
    #40     Mar 5, 2020