Basics of selling option Premium?

Discussion in 'Options' started by spinn, Dec 15, 2022.

  1. Sell covered options or risk going back to your parents. Or at least only trade spreads. Really not that difficult.
     
    #11     Dec 16, 2022
  2. lindq

    lindq

    There will come a time when you regret that statement, and then you'll understand that it's a big flaw in a strategy of selling premium.

    When you open a short option position, you're putting yourself at the mercy of future events (earnings, black swans, death, destruction, etc.), which you can't predict. Your underlying(s) will get wacked, and you'll end up with a growing portfolio of junk.

    Trying to work yourself out of that mess isn't any party.

    My advice to you isn't theoretical. It is based on long experience, which has been painfully shared by many option sellers.
     
    #12     Dec 16, 2022
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  3. newwurldmn

    newwurldmn

    It’s never fun when that happens. But the hundreds of smaller wins make up for it.
     
    #13     Dec 16, 2022
  4. Zwaen

    Zwaen

    Or try ratios (which oké are also spreads and naked parts, so better not if you don’t know what can happen).
    It’s fun till it’s march ‘20 again. A high vix is a friend and enemy in the same jacket.
     
    #14     Dec 16, 2022
  5. taowave

    taowave

    LOL@ RetardationCertifier.... Thats a brutal job on this website
     
    #15     Dec 16, 2022
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  6. I know, know (I'm preparing the rotary presses) :)
     
    #16     Dec 16, 2022
    taowave likes this.
  7. TheDawn

    TheDawn

    Better than BullyCertifier or FakeShitCertifier. Wouldn't want to be in those jobs ever. LOL
     
    #17     Dec 16, 2022
    RetardationCertifier likes this.
  8. I have already spotted some impressive candidates for the certificates. But need more evidence. We do not give those easily :)
     
    #18     Dec 16, 2022
  9. TheDawn

    TheDawn

    You should also add a PatheticTrollCertifier while you are at it. I am sure you wouldn't be short of candidates for that certificate either. :)
     
    #19     Dec 16, 2022
    RetardationCertifier likes this.
  10. spy

    spy

    Are they given retroactively? Because I'd like to nominate the "infinite gamma" concept as proposed by TheDawn here.
     
    #20     Dec 16, 2022