The first 40 pages...
So, you kick it off Socrates by saying EVERYONES STUPID...
It is time to put an end to all the nonsense.
This thread is dedicated to the topic of writing plain vanilla options on the FTSE 100 INDEX, and logging of results, in series.
The number crunch having been completed this evening, on Thursday 25th January I shall write the following naked options:~
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With no initiation for 'detractors' you START IT with...
Is this enough notice for you ducatti ?
I am even willing to take bets at even money except in the case of Profitaker
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Then ahhh... PEOPLE BEING NICE...
Socrates, you amaze me! This must be the first time that I have ever seen you stick your neck out. Makes me decidedly suspicious but warms me towards you, somewhat, provided that there is no hidden trap for little sparrows.
Personally, I am quite sure that you are right, for reasons that I have, already, expressed i.e writing is the name of the option game, but naked on the index is a move that I would not have expected from you.
I would not do it for the risk argument but I wish you luck and the odds are that you will win.
and...............
At last!!
I think you will earn more kudos for this than for anything else.
Go for it Socrates, and best of luck.
EDIT: I vote a big fat W
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Profitaker has DOUBTS....
I think somebody needs to look up the word "guarantee" in the english dictionary before it's used in the context of writing naked puts. The statement is categorically wrong !
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and dashing blade asks a very reasonable question...
But there is no guarantee that at no point during the trade there will be a notional loss.
Would be helpful if you also posted the margin requirement.
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Oh look, more PRAISE...
W !!!
Good on you, Socrates ;-)
Richard
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Then one of your group step up and INSULT ALL by saying T2W is not worthy...
Originally Posted by CYOF
And Socrates, please do not show them how to hedge correctly, for
they do not deserve it, and that edge is indeed only kept for another place - you know what I mean of course.
Socrates staed in his first post that "This thread is dedicated to the topic of writing plain vanilla options on the FTSE 100 INDEX, and logging of results, in series."
A dashing blade just confirms for all....
So, to my mind that means no hedging. This is a plain vanilla write unless Socrates says different.
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Followed by you, having a POP AT those you blame who have hardly said a word in the thread...
Yes......you watch.......there is no such thing as luck in trading,......... but there is know how and nerve........all this just to show ducatti and profitaker and any other detractor who dares to pop his head above the parapet to me for that matter.....lets rock and roll....let me have your vote asap...also thanks for your good wishes....and since you wish me well I advise you not to bet against me..... ....incidentally the Thursday trade as announced last night is still on.
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Oh and of course, you are better than everyone else....
And don't be rude and personal to your elders and betters while you are at it.
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Which ones, no one has said anything yet?!
Yes exactly. Watch me proceed to wipe the floor with my detractors...
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**** me, more PRAISE....
W
Good luck Socrates.
paulf
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Profittaker asks/suggest something regarding CYOF earlier comment....
Originally Posted by Profitaker
Hedging "from the off" with short futures has the effect of turning the position into a short straddle. Short Puts + Short Futures = Short Straddle.
and.... CYOF starts with the abuse...
Aha, and did you cast your vote yet Wizard of ODDS -let me check?
And what about my post#411 - is that now gone by the wayside?
Socrates, remember "happy are those who have not seen yet believe".
If you keep this up we will have to call you -SOCRAMIDAS
And not one bit of Buying - hmm, makes you THINK, NO
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Another supportive post....
Socrates,
Nice thread - good to see a philosopher also happy to demonstrate practicalities By the way, my vote is unequivocally W, but only in the sense of it being the lesser of two evils. To my mind buying options is a mugs game, but writing them is only marginally less so if done in small scale. A bit like offering insurance policies really - all very well if you're Norwich Union, less sensible if you're doing it yourself for the neighbours in your street.
Assuming these are unhedged, I can see a range of scenarios that pushes FTSE down 3% plus your premium between now and June 15th... They may be unlikely, but 'guaranteed' not to happen? Hmmm. I wouldn't be buying your puts... but I wouldn't be selling them either. Just can't see the risk/reward stacks up.
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So there you are Soc. I read the first few pages and looks like you were already knocking your pint over on purpose and looking for someone to blame it on....
If people cannot see who initiates the arguments, your all blind, blind I tell ya!
Now, excuse me as I have trading to do!