Writing puts on indexes

"I'm like the rest of you, I put my hedges on one leg at a time. But once they're on, I make gold trades."

"I got a fever... and the only prescription, is more hedging."

 

Walken is God. I will never tire of that skit.

 

Keep in mind timing is everything..when others are running away is exactly when you should be doubling down...green is coming like you would not believe)

 

"911, what is your emergency"

"I'm long AAPL shares and short AAPL puts as a hedge"

216 last.

 

Dude is off $12K on shares. Where art thou, poor Yorick?

 

Please tell me it's not a real situation?

 

It is real and it is spectacular.


He posted statements before quickly deleting

 

I am speechless.

 

And I quote (@silver182),

"Simply put, hedging is defined as protecting yourself in the case of an unforeseen event is it not?"

He "protected" himself by shorting puts into a long AAPL position... a position derived from a previous put-assignment.

The guy shorted the AAPL *** 235 *** puts for Oct. He was already long 401 shares via assignment before shorting the 235s. He never replied as to why the additional share. Perhaps it was a liquidity test!

IOW, insult meet injury. Then the guy got assigned on the 235s. He's gotta be down something like 40-$50K in AAPL alone.

188 last. IIRC he shorted those 235s at $6.