MattLikesAnalysis Wrote: ------------------------------------------------------- > My Thomson One says Annual Low of 309.44… I guess > you can’t trust your trading platforms. > > Anyway, I’d suggest selling that put before this > rally fizzles IronMan. > > Don’t be a hoper, be a doer 
I believe he’s short the put.
Interesting thread. I appreciate the illustration of how selling puts works in reality. Just checking, but you don’t put up margin on long puts or calls, right?
If you can hold on through the margin call, I’d resist covering today. It always sucks to try and make a 1-2 week market call, but the options still OTM.
Yeah, I know he’s short the put. But it just doesn’t sound right, ‘i’d suggest buying that put into a rally’. You may be right NP. Although I’m risk averse to the fact that he could end up losing quite a bit of dough, but I am risk averse enough to not sell naked options. I like buying options though, and being the kind of chump that ironman started this all of with.
NakedPuts Wrote: ------------------------------------------------------- > If you can hold on through the margin call, I’d > resist covering today. It always sucks to try and > make a 1-2 week market call, but the options still > OTM. Yup made it through the margin call with ease this morning. But I’ll get another one for sure on Monday morning unless we have an amazing rally here today. I can make it through that but then it starts to get scary.
FYI guys, covered my GOOG put. Also sold 3 more of the GS 85 puts. Received more sales profits than I had to pay to cover the GOOG so will make even more $$ than I thought as long as GS doesn’t implode. Margin calls in GOOG were scaring me. GS will loosen it up just a tad.
I just sold some GE puts. Selling RSX puts might be good, too.
virginCFAhooker Wrote: ------------------------------------------------------- > I just sold some GE puts. Selling RSX puts might > be good, too. did you sell them naked?
Had to join the fun…sold a November 62p/59p credit spread on GLD. Not sure how i feel about it though, sold at 61% IV and bought at 66%…that seems pretty steep…can anyone comment on this?
Yes, I sold them naked! I wouldn’t mind buying GE at $15 NLY at $10 RSX at $10 (Sarah Palin can see Russia) The risk/volatilty premium is off the chart. I’ve got sell orders in on other puts.
Isn’t his put with a 300 strike price? If it is OTM why does he have to post up money? I don’t think Goog is fallen to 300…
ancientmtk Wrote: ------------------------------------------------------- > Isn’t his put with a 300 strike price? If it is > OTM why does he have to post up money? I don’t > think Goog is fallen to 300… Broker assumes stock can to 0, which it can, but not really. They charge a % of the underlying value minues OTM option value plus proceeeds from the option sale. So on a really high dollar name like Goldman, it takes substantial capital to cover the margin.
virginCFAhooker Wrote: ------------------------------------------------------- > Yes, I sold them naked! > > I wouldn’t mind buying > GE at $15 > NLY at $10 > RSX at $10 (Sarah Palin can see Russia) > > The risk/volatilty premium is off the chart. I’ve > got sell orders in on other puts. I like it, especially GE. I bought some of that a few days ago.
Shouldn’t ur margin account cover the case if the stock goes to 0?
ancientmtk Wrote: ------------------------------------------------------- > Shouldn’t ur margin account cover the case if the > stock goes to 0? how do you figure?
I dont know. All i know about options is from L1 material. I am confused as to why you have to post up more $$$ when goog is going south but yet not below strike price.
IronMan Wrote: ------------------------------------------------------- > JoeyDVivre Wrote: > -------------------------------------------------- > ----- > > lol…IronMan is going to be paying tuition one > of > > those days. > > no guts, no glory I have a feeling that you’re tuition bill is going to be quite expensive.At this rate you’ll be out of the game in no time. You’re betting against professionals who know more about pricing options than you can imagine.
mo34 Wrote: ------------------------------------------------------- > IronMan Wrote: > -------------------------------------------------- > ----- > > JoeyDVivre Wrote: > > > -------------------------------------------------- > > > ----- > > > lol…IronMan is going to be paying tuition > one > > of > > > those days. > > > > no guts, no glory > > > I have a feeling that you’re tuition bill is going > to be quite expensive.At this rate you’ll be out > of the game in no time. You’re betting against > professionals who know more about pricing options > than you can imagine. It would have taken a black swan for these stocks to hit these OTM puts I sold. It looks like we may get it, but I was on the right side.
IronMan Wrote: ------------------------------------------------------- > mo34 Wrote: > -------------------------------------------------- > ----- > > IronMan Wrote: > > > -------------------------------------------------- > > > ----- > > > JoeyDVivre Wrote: > > > > > > -------------------------------------------------- > > > > > > ----- > > > > lol…IronMan is going to be paying tuition > > one > > > of > > > > those days. > > > > > > no guts, no glory > > > > > > I have a feeling that you’re tuition bill is > going > > to be quite expensive.At this rate you’ll be > out > > of the game in no time. You’re betting against > > professionals who know more about pricing > options > > than you can imagine. > > It would have taken a black swan for these stocks > to hit these OTM puts I sold. It looks like we > may get it, but I was on the right side. With the VIX so high, we’re already in the tail of the distribution and have been for sometime now, your “regular” odds don’t apply. They have pricing models specifically for the tails.
I just love when people fight trends, thinking they can call the bottom and make huge money on it. We’re in a bear market, as of October 2007, you’re telling me that because we’ve dropped 16% in 15 days, that we can’t drop another 10% in 15 days, its all relative. Say that 1550 was never supposed to happen in a perfectly priced market, and that over the past 200 years, the real number is closer to 1000, or 600, who knows. Stepping in the way of a massive selloff is a way to get yourself thrown out a window… by yourself.