Plain Vanilla Options Trades.

[A Dashing Blade]

Some idiot has bought from Bulldozer 1000 Apr 5925 FTSE 100 INDEX Puts, he has just written @ 45....

Trade went through 12.42

It was part of a 1000 lot trade by the look of it . . . . so very unlikely to be a directional punt, possibly (but hey you decide) one side of a spread that involved the 1000 lot trade @ 95 in the Apl 6425 calls also timed @ 12.42.

A the open interest in the puts was 253 last night, that's an opening trade, imposssible to tell for the calls.

Given that, at that size, the trade is likely to be "institutional", it is impossible to work out the rationale (ie could be protection while a large portfolio switch takes place etc)

Are we in any danger of getting the margin requirements on these trades Socrates?

 

[the blades]

The point I am making, and I am making it to the entirer membership, is that those of you who have been rude, impertinent, disrespectful, confrontational, aggressive, inept, insulting, and generally "naff" to me whether directly or indirectly in the past are now going to be taught one by one what a blunder you have committed by adopting the postures to me that you have.

what a shame - especially when you were once so giving .

As for the "rude" comments, there's no doubting the colour of your pots and kettles, Soc.

UTB

 

[A Dashing Blade]

You will find it unwise to go along with the majority popular opinion, because it is nearly always wrong and even more unwise of you to suggest the contrary.

You and I are both old enough to appreciate that the crowd is always wrong Socrates, however, that applys to taking trades, not neccessarily to a conviction.

 

[SOCRATES]

Trade went through 12.42

It was part of a 1000 lot trade by the look of it . . . . so very unlikely to be a directional punt, possibly (but hey you decide) one side of a spread that involved the 1000 lot trade @ 95 in the Apl 6425 calls also timed @ 12.42.

A the open interest in the puts was 253 last night, that's an opening trade, imposssible to tell for the calls.

Given that, at that size, the trade is likely to be "institutional", it is impossible to work out the rationale (ie could be protection while a large portfolio switch takes place etc)

Are we in any danger of getting the margin requirements on these trades Socrates?

I am very very bizzi...no time.....has it occured to you Bulldozer may be a short strangler ?

 

[Profitaker]

DB

Margin requirement to short 1000 x Apr07 5925 Puts is £ 1,390,000, as at last night. So will almost certainly be an institutional trade. Could be a hedge, could be a speculation, could be a liquidation, impossible to know.

I wouldn't hold your breath waiting for old Soc to tell you the margin requirements on his alledged trades - he simply won't know that information because he didn't make the trade, IMHO.

 

[SOCRATES]

You and I are both old enough to appreciate that the crowd is always wrong Socrates, however, that applys to taking trades, not neccessarily to a conviction.

No it is not, it applies to everything, and the crowd is the goat, sorry.

I did not say this, RW said it. I am repeating here what he said.

 

[SOCRATES]

DB

Margin requirement to short 1000 x Apr07 5925 Puts is £ 1,390,000, as at last night. So will almost certainly be an institutional trade. Could be a hedge, could be a speculation, could be a liquidation, impossible to know.

I wouldn't hold your breath waiting for old Soc to tell you the margin requirements on his alledged trades - he simply won't know that information because he didn't make the trade, IMHO.

I am very bizzi....r u going to starty arguing with me, eh ? Timestamp 13.55.25.09

Clear off !

 

[A Dashing Blade]

I am very very bizzi...no time.....has it occured to you Bulldozer may be a short strangler ?

In a 1000 lot . . . . mwah hah hah hah hah

 

[SOCRATES]

what a shame - especially when you were once so giving .

As for the "rude" comments, there's no doubting the colour of your pots and kettles, Soc.

UTB

You shut up and mind your own business, this is not spreadbetting, this is the real Mc Coy.

Next you will be asking about margins...

Go and ask Profitaker, as he also knows the price of everything and the value of nothing.:cheesy:

How is your football team doing by the way ?

 

[SOCRATES]

Very bizzi...
written 9 @49.5
deatais in next post.

Upgrade.

Trade number 7 Written 9 Apr FTSE 100 Puts @ 49.5

 

[the blades]

You shut up and mind your own business, this is not spreadbetting, this is the real Mc Coy.

blast, after donating vast sums of money to those spreadbetting firms for the last umpteen years, I still haven't grasped it , have I? (feeling all smug)

Next you will be asking about margins...

Nah, it seems you don't know the answer

How is your football team doing by the way ?

Struggling like hell to make their point, which seems very apt on this thread

Cheers,
UTB

 

[A Dashing Blade]

DB

Margin requirement to short 1000 x Apr07 5925 Puts is £ 1,390,000, as at last night. So will almost certainly be an institutional trade. Could be a hedge, could be a speculation, could be a liquidation, impossible to know.

So, let me get this right, these Apl 5925 put writes for £450 are tying up roughly £1400 per contract (and that's presumably market minimum with most brokers requiring more)?

Isn't that more than the initial margin on the FTSE future?

 

[SOCRATES]

blast, after donating vast sums of money to those spreadbetting firms for the last umpteen years, I still haven't grasped it


Nah, it seems you don't know the answer


Struggling like hell to make their point, which seems very apt on this thread

Cheers,
UTB

Out of your league, you are.

But hang around and sooner or later you will get the hang of it.

Cheers Big Ears...:cheesy:

 

[SOCRATES]

So, let me get this right, these Apl 5925 put writes for £450 are tying up roughly £1400 per contract (and that's presumably market minimum with most brokers requiring more)?

Isn't that more than the initial margin on the FTSE future?

While you are at it, Dashing, ask this clown when if ever he is going to reply to question 411.
he has put me on ignore ...perhaps if you prod him you may have more luck...

 

[SOCRATES]

OuuuuF ! ...Now ducatti has arrived !

You Hoo ! I can see you peeping !
I am the new gatekeeper...so you know perfectly well what that means, ducatti..:cheesy:

 

[laptop1]

Good, I am very pleased to hear it.

I have a memory like an elephant. I have not forgotten you adressed 5 disrepectful and rude and provocative posts to me in a row on other threads. You ought to cogitate and consider it is not wise to engage me as you have done in the past.

By the way this is not a personal attack on you, but I am using it as a model to illustrate a point.

The point I am making, and I am making it to the entirer membership, is that those of you who have been rude, impertinent, disrespectful, confrontational, aggressive, inept, insulting, and generally "naff" to me whether directly or indirectly in the past are now going to be taught one by one what a blunder you have committed by adopting the postures to me that you have.

Enough of Bulldozer and trying to curry favour one way or anouther, now let us have your vote if you please, without further delay.

The topic of this thread is related exclusively as to whether the Writer or the Buyer has the Edge in Naked Option Writing. The vote is either a W or a B, and fence sitting is not allowed. Thank you.

I dont trade options the way most trade them, all I know is, the potential loss of uncovered call writing is unlimited. The writer of an uncovered call is a risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price.


In my humble opinion, all trading is risky whether it be options or trading the underlining market of you choice.

 

[ducati998]

An additional problem with selling [writing] of course are the volatility skews.
With IV dictating your entry/exit prices, a small change can hurt the seller quite badly.

Now Wall St has been open for 45mins, we've had a couple of strong days, but, the S&P500 is -2.33. DJIA -13.54 NASDAQ +........no just gone -2.74

FTSE.................watching US Markets?

jog on
d998

 

[SOCRATES]

I dont trade options the way most trade them, all I know is, the potential loss of uncovered call writing is unlimited. The writer of an uncovered call is a risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price.


In my humble opinion, all trading is risky whether it be options or trading the underlining market of you choice.[/QUOTE]


Yes you are perfectly correct, but it only applies to those not in the know.
Those who know, know....and those that don't don't.
And at least in the opinion you express above you are honest.
But on this thread there are those who don't know but insist they know, but know very little or nothing or useless knowledge, and insist and insist.....
When they realise they don't know then the penny will drop and not until then.
This is the reason why I persist, just to obstinately prove a point, because I can.
The writers have the edge over the buyers, period.

 

[Profitaker]

So, let me get this right, these Apl 5925 put writes for £450 are tying up roughly £1400 per contract (and that's presumably market minimum with most brokers requiring more)?

Isn't that more than the initial margin on the FTSE future?

Yes, £ 1390 per contract. And yes, in addition there is always a broker surcharge (typically 25%). Margin for futures is £ 1820 per contract, again + broker surcharge.

 

[ducati998]

I dont trade options the way most trade them, all I know is, the potential loss of uncovered call writing is unlimited. The writer of an uncovered call is a risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price.


In my humble opinion, all trading is risky whether it be options or trading the underlining market of you choice.[/QUOTE]
Yes you are perfectly correct, but it only applies to those not in the know.

Those who know, know....and those that don't don't.
And at least in the opinion you express above you are honest.
But on this thread there are those who don't know but insist they know, but know very little or nothing or useless knowledge.
When they realise they don't know then the penny will drop and not until then.
This is the reason why I persist, just to obstinately prove a point, because I can.
The writers have the edge over the buyers, period.

Incorrect.
Neither has an edge.

jog on
d998