Just sold a 300 Nov Put for 4.10. Thanks Chumps!
I don’t have the male fortitude to sell puts in this environment…
Big deal…everyone knows the Dow will be 6500 by November.
RE: Big deal…everyone knows the Dow will be 6500 by November. What do you mean? He’s playing for GOOG to go up meaning market will go up as well…
what are you going to do with your $410 ?
drs Wrote: ------------------------------------------------------- > what are you going to do with your $410 ? exactly. he sold 71 vol…
Are these uncovered puts? I probably would not be selling directional bets in this market. If these are just volatility plays, it can still get worse; just because we have not seens volatilitity values that high before does not mean they cannot get higher.
CFAchief Wrote: ------------------------------------------------------- > Are these uncovered puts? I probably would not be > selling directional bets in this market. If these > are just volatility plays, it can still get worse; > just because we have not seens volatilitity values > that high before does not mean they cannot get > higher. Yes uncovered, a single put. Just making a bet that vol on GOOG will come down. Also, don’t really think stock will tank below 300. It could certainly, but not for a while. And at that point, decay will be eating away most of the premium so I should at worst, be able to cover them for no gain or loss if forced to.
Way to look like an amateur, IronMan. You sold one OTM put at high vol, pocketed $400, and you are cheering about it on the internet?
What happens when GOOG does tank to $300 and you want to get out? Then you’ll be paying a lot more than $400 to close your contract…
soxboys21 Wrote: ------------------------------------------------------- > What happens when GOOG does tank to $300 and you > want to get out? Then you’ll be paying a lot more > than $400 to close your contract… Depends on what day it tanks to 300.
JoeyDVivre Wrote: ------------------------------------------------------- > Way to look like an amateur, IronMan. You sold > one OTM put at high vol, pocketed $400, and you > are cheering about it on the internet? Shouldn’t you be teaching a class old man?
With this volatility, I’d rather do a straddle or a strangle!
Also, GOOG vol has been above 90 recently. A better play would have been a 340-300 credit spread.
Funny thing: when I look at time & sales, he sold this put pretty darn close to the high of GOOG for the day! =)
So you had to place $7500 collateral to write that put, right? It can disappear pretty fast.
$7,500 collateral? Crap no wonder I’m not in the business of writing puts.
CFAchief Wrote: ------------------------------------------------------- > So you had to place $7500 collateral to write that > put, right? It can disappear pretty fast. how are you figuring that? Because I don’t think that’s the case.
My naked option calculator at work says $5,700 roughly!
Ok, my mental math was close. Whatever the actual collateral may have been, it is at least few thousand dollars. Writing naked puts is a dangerous business. There is a variety of structured positions that allow to sell volatility and have some upside if stock goes up, which is what you want - and all of them have some protection if GOOG were to tank.