Plain Vanilla Options Trades.

[SOCRATES]

If "professionals" only sell options, counter-parties must buy them. And the majority of these counter-parties will be professionals, ie market-makers (of course, it could be countered that the mm's will sell these as quicky as possible). Or is this buying reluctant, an exception, being nothing more than a reflection of their requirements in maintaining a market?

Grant.

Not necessarily, see my reply to Zupcon, above.

 

[SOCRATES]

in order to address the question of who is professional and who is not, i can assure you that those paid a million odd pounds a year in bonus consider themselves professional, and whoever here has ever had the experience of meeting and working with such people would also consider them professional - in merit, ability AND conduct! if they were anything else, i can assure you that some of the smartest money around wouldnt be giving them billions to 'play' with whilst on the 'treadmill'.

or am i wrong? are these folk who are manipulating the market to their own ends WITH other peeps money (i.e. no risk to themselves, other than their own money they have also decided to invest in THEIR OWN management) really a bunch of plums?

i can assure you all, these guys wouldnt really consider someone tinkering round on a message board with a handful of contracts from their 'home office' a professional, but very much a retail amateur.

i guess were going back to the merit, ability and conduct argument.

Precisely, Merit Ability and Conduct.

 

[SOCRATES]

Wasn't Nick Leeson a "professional" ?

Wasn't he also a seasoned premium seller ?

You know diddly squat about Nick Leeson or anything else for that matter.

Nick Leeson was a BUYER ot the NIkkei Futures in a weak market.

He was not a promium seller of anything.

He was a victim. He was a victim of a system in which all the fatcats in the bank believed the other one knew what was what and in the end result none of them knew anything.

I am not defending him or what he did.

He was just an example, a very clear example of what can go wrong when people are expected to fulfil duties for which they are not properly prepared.

And that...is the end of that .......tonight....because tomorrow...the games...and goodnight to you all.:cheesy:

 

[PKFFW]

You have a lot to say. I wish I had not mentioned fruit and chosen somethng else.:cheesy:

I used it as a model to illustrate a point and not for it to be taken literally line for line and word for word.

The model you chose, as I pointed out, was fundamentally flawed. As it was your chosen analogy I had nothing else to work with but that. As you chose it, take responsibility for that. Do not try to suggest it was taken wrongly. In future choose a better, more apt analogy.

What I suggest to you, is that you follow the progress of the instruments that I write and sooner or later the penny will drop that I am not only right, but right consistently, and that none of it can be chance.

I am also considering, but have not yet decided because of time constraints, to do a thread on other derivatives, to frighten the living daylights out of everybody as well.:cheesy:

You still have not explained how you making any number of profitable trades in a row will show how the edge you are displaying(and I'm not denying you do seem to have a distinct edge when it comes to writing options) is intrinsic to the writing of options.

Your assertion that this thread, where you display correct trades, is proof of your hypothesis would be akin to me claiming that my saying the colour of the sky is red 100 times in a row, constitutes proof that the colour of the sky is red. This simply isn't so.

To prove your hypothesis you must come up with an experiment that accounts for all the variables. This thread does not do that. You must come up with an experiment that discounts other possiblities. This thread does not do that. From a scientific point of view this thread proves nothing. Your hypothesis may very well be correct. As I stated before, I do not know. What I do know though, and I suspect you do too, is that this thread will not prove your hypothesis regardless of how many correct calls in a row you make.

It is interesting to see you posting live calls. Interesting to see if you can make an endless number of correct calls in a row as you claim. Interesting to see you dodge any questions or remarks pertaining to the fact that this thread will not and can not actually prove your hypothesis, as you claim it will. In the end though, interest is not proof.

Cheers,
PKFFW

 

[dc2000]

I am not going to lose my shirt because there are no black swans or black scholes or black holes, so thank you for your concern but you really ought not to worry.

I wasnt worried the key word was "could" lose his shirt I was refering to an extraordinary event, one thing I did note was that you posted an update of your trades if I may suggest that this should be done every 10 pages as the thread gets longer this would provide for an easy way to follow progress

Nick Leeson was a BUYER ot the NIkkei Futures in a weak market.

He was not a promium seller of anything.

Actually Nick is not the best example to use in this case as he did write options inorder to generate premium commissions which he later bought back for a very nice profit, his mistake was to believe he could do it with such ease a second time

 

[Splitlink]

What are you talking about now, Sptlink ?

Why do you wander off the topic altogether, eh ?

Explain how it is that the one taking delivery at the end of a finacial based option is a consumer and takes delivery...delivery of what exactly ?

Please engage brain before you post, there's a good gentleman...thank you.

I realise that, but the comparison can be made with regard to the ultimate buyer, who would be a consumer, and the intermediates who are not.

Anyway-----it's Monday morning. Have a good week and make money!

Split

 

[Profitaker]

Actually Nick is not the best example to use in this case as he did write options inorder to generate premium commissions which he later bought back for a very nice profit, his mistake was to believe he could do it with such ease a second time

Somebody was asking if a "professional" would care to comment on this thread. I highlighted Leeson merely to point out that not all so-called "professionals" know what they're doing, and none more so in the world of "trading" I suggest.

I'm sure Leeson did make a few shillings along the way shorting options. However, he was short an absolute shed load of Nikkei straddles. He was way out of his depth, he did not appreciate the risk he was carrying. Then a black swan appeared (gasp), by way of an earthquake in Kobe. The rest, as they say, is history.

 

[SOCRATES]

Trades 10 and 11........Latest.

Just filled on both. Thank you.

10. Written 3 FTSE 100 6125 Mar Puts @ 85 = (85 X 10 X 3 = £2550=)

11. Written 3 FTSE 100 6175 Mar Puts @ 100 = (100 X 3 X 10 = £3000=)

 

[SOCRATES]

Somebody was asking if a "professional" would care to comment on this thread. I highlighted Leeson merely to point out that not all so-called "professionals" know what they're doing, and none more so in the world of "trading" I suggest.

I'm sure Leeson did make a few shillings along the way shorting options. However, he was short an absolute shed load of Nikkei straddles. He was way out of his depth, he did not appreciate the risk he was carrying. Then a black swan appeared (gasp), by way of an earthquake in Kobe. The rest, as they say, is history.

Rubbish, lies, but I don't have time to devote to this just now.

 

[SOCRATES]

Please look on your screens. The trades are showing on your screens.

 

[SOCRATES]

[QUOTEBulldozer says only Monkeys sit on fences, serious traders commit one way or another.

He is eager to bet any member Profitaker has never posted one single winning trade during the period of his membership here. He bets you £100 if you can find a post (unaltered of course) in which he posts a winning trade in public. I have decided to match his wager equally. All proceeds go to charity.

All members start looking. Anyone finding any gets £200 per legitemate find of an unaltered post up to this minute.

The same applies to The Dashing Blade.

That for the moment, is the end of next week's news today.

Thank you.=SOCRATES][/QUOTE]
Nonsense you post Profitaker, about Leeson and all sorts of thngs you know nothing about, or just bluster as usual or stuff out of boring textbooks.

 

[SOCRATES]

Trades 10 and 11........Latest.

Just filled on both. Thank you.

10. Written 3 FTSE 100 6125 Mar Puts @ 85 = (85 X 10 X 3 = £2550=)

11. Written 3 FTSE 100 6175 Mar Puts @ 100 = (100 X 3 X 10 = £3000=)

A quick scalp ? Why not ?

Order in to buy back 3 X 6125 puts @ 75 or thereabouts

and

Order to buy back 3 X 6175 puts @88 or thereabouts.

Waiting...

 

[SOCRATES]

Trades 10 and 11

...closed

trade 10 filled @

trade 11 filled @


results pending...

 

[dc2000]

Scalping options ? isn't that like using a sledgehammer to crush a peanut?

Not sure I appreciate Bulldozer putting a bounty on T2W members heads smells a bit like bullying to stop members asking questions

 

[SOCRATES]

Scalping options ? isn't that like using a sledgehammer to crush a peanut?

Not sure I appreciate Bulldozer putting a bounty on T2W members heads smells a bit like bullying to stop members asking questions

No he says it is to show up the monkey and the monkey nuts and tthe bananas, and I agree with him.

As for the sledgehammer, it is there to be used when needed, if you had one of your own you would do the same.

 

[A Dashing Blade]

A quick scalp ? Why not ?
. . .
Order to buy back 3 X 6175 puts @88 or thereabouts.

Keeping it simple for everyone . . .

In round numbers, and assuming I've used this options functionality correctly (a big if!), the index "should" be around 6255 for that to happen (iv = 13.5%)

ie a 30 point rise from where the trade was executed.

 

[Profitaker]

Scalping options ? isn't that like using a sledgehammer to crush a peanut?

Not sure I appreciate Bulldozer putting a bounty on T2W members heads smells a bit like bullying to stop members asking questions

You'd have to be deranged to scalp the index using options, especially on the short side, what with wide spreads and unlimited risk. But then again that would fit in quite well with some of our deranged posters.

 

[Profitaker]

DB

Index >6250 then Mar 6175P <88, notwithstanding any change in IV.

 

[SOCRATES]

You'd have to be deranged to scalp the index using options, especially on the short side, what with wide spreads and unlimited risk. But then again that would fit in quite well with some of our deranged posters.

Time...and the market...will prove me right anyway..and this will happen sooner ...or later.

The offer previously made of a bounty to anyone who can show a trade (let alone a profitable one... ....)....made by profitalker, LIVE, on this forum or any other forum, Tactical Trader or Citybulls, still stands.... ...or even Elite.... ...but not the PL or The Star Chamber.....

Rude and boorish he is, first he places me on ignore, and then goes on to plaster his graffitti all over my thread......hahaha....there's a creature for you.....

"Let me in !"...he screams...

But as I am the gatekeeper and I hold the keys, I have the last say :cheesy: to keep him permanently OUT.

 

[dc2000]

at what price were trades 10 and 11 closed at?