Selling ATM Options - Viable for long term strategy?

Discussion in 'Options' started by badlucktrades, Sep 24, 2015.

  1. I guess you missed the big red bold part that say "Buy Writes", you should read a bit more before claiming falsehood of something you didn't understand.

    For reference what destriero said is 100% factually correct.
     
    #11     Sep 24, 2015
    samuel11 likes this.
  2. destriero

    destriero


    dipshit wouldn't know what to do with an option if it landed on your face. yes, you are proof that the market could rally 10% and you will still manage to lose with bull spreads.

    anything can happen, but short puts do better in bear markets, as indicated by BXM due to the rollover at higher vol-deciles as well as the premium received. Also, implied vol has been shown to overstate realized (UChicago study). all of these factors contribute.

    wtf does linearity have to do with anything, oxygen thief?
     
    #12     Sep 24, 2015
  3. destriero

    destriero


    anything held for portfolio allocation purposes, tax treatment, etc., where you are generally precluded from actively trading or timing the position.
     
    #13     Sep 24, 2015

  4. What is your point?



    :)
     
    #14     Sep 24, 2015
  5. see i knew you cared! all those arguments in the other thread. all are forgiven. You're like a pineapple. hard,rough, prickly on the outside. sweet and tangy on the inside. you just don't want people to blow up their accounts.
     
    #15     Sep 24, 2015
  6. Destriero's styles is very easy to recognize, I suggest you search for any threads authored by Atticus and you will understand. Be prepared to spend hours reading over them :)
     
    #16     Sep 24, 2015
    i960 likes this.
  7. The point is that you don't know what a buy write is. And also that it seems you like to drop categorical statements that are incorrect (not to mention a certain troll'ish attitude).
     
    #17     Sep 24, 2015


  8. Yes I do.



    No I don't.




    :)
     
    #18     Sep 24, 2015
    Wisard likes this.
  9. JTrades

    JTrades


    Are we in a bear market or are we in a boppy market?


    boppy 1
    ˈbɒpi/
    noun
    1. a significant dip in a bull market that can appear like the beginning of a bear market. The word is derived from buying opportunity.
     
    #19     Sep 24, 2015
    samuel11, Autodidact and xandman like this.
  10. With the upcoming netflix earnings oct 14,

    I'm thinking, IF you can execute the following, it would have a high probability of success. pretty sure this is a strategy, I just don't know the name

    Sell ATM strangle 104
    Buy 1x 105 put
    Buy 1x 103 call

    Current range is 0.81 to 1.21 for this spread.
    After commissions, if you can get this for under <1.00. Isn't this a reasonable trade? i.e if you can get it for 0.85 to 0.90.

    Premium may not be great, but its still a 10% Return in under 30 days.
     
    #20     Sep 24, 2015