I am no expert, but there is no intuition. I tried trading with intuition. Not a pretty sight. After reading this thread many times, I am...
Wait a minute! About the underlying, when selling otm options, you don't have to be too accurate on the underlying. You don't have to know where...
Generally speaking, not as big as the premiums.
Echoing Ursa and MTE, I paper traded this strategy with many securities for about 6 months. It's a losing strategy. If you had the capital,...
Yes, Iceman. I think Union was referring to the few comments on selling way OTM options. He was just adding that warning, which I learned the hard...
I agree with Nordic. Even if you don't agree with Mav or Risk, you gotta admit, they make you think. They may also prevent you from entering a...
Maverick makes a good point that I never thought of before. So it goes back to the question "Can you TRADE options for a living?" What's our...
No mention about his own account.
Oh I forgot to add. It is writing naked.
One risk management plan is to get out if the option doubles in value. Then you may want to sell further away because the high volatility would be...
I am a newbie. Could you explain to me why this would be dangerous? He recommends exit strategies, such as if the ootion doubles in value, get...
Has anyone read James Cordier's book on writing naked options. He is advocating writing options 3 to 5 months away. Although boring, he claims...
This is the most interesting and the most educational thread. By reading ALL comments, I am concluding that you can't win in the options game....
Excuse my ignorance. So, when they say "75% of options expire worthless." What are they talking about? The actual security OR the open interest.
Maverick brings up a good point. How is it possible that all those options expire worthless? How can that happen? If IBM is trading at 100. all...
I am not good at interpreting TA to enter a position. But when there is so many sell signals using TA, I sold and I'm glad I did, eventhough they...
Getting back to spreads. What about ratio credit spreads on both sides?
So, maybe that is the edge. Ratio credit spread. Buying way out of the money calls AND fewer ATM calls. Then make adjustments. If the underlying...
Let's look at an example. The crude oil futures January $85 calls expire on December 16. They are now trading at $550 each, which represents...
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