SOCRATES
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Nah !...he is just contradicting for the sake of it....zupcon said:Perhaps he means one would never sell naked puts exclusively
I know very well who's who in the zoo, don't you worry.
Nah !...he is just contradicting for the sake of it....zupcon said:Perhaps he means one would never sell naked puts exclusively
grantx said:Spitlink,
"Even if they don't fail, the shareholders, usually, get a better return on their money than the fund investors." Ain't that the truth. What's preferable? I'll stick with the shareholders here: a greater certainty of a small return vs a greater uncertainty of a larger return - less risk, less reward.
Grant.
superfly said:If you can callibrate your betsize/scaling, so that a drop of -/-40% in the underlying overnight might only eat a few % of stake, then W.
SOCRATES said:No, not exactly...because I am wearing a safety harness that guarantees I will not fall in.........so every shark and sharklet that appears and smiles at me gets frazzled...
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Profitaker said:By definition, you cannot prepare for the unexpected, because it is....unexpected. Yes you can prepare for the expected, but not the unexpected.
If one were prepared for the unexpected one would never sell naked Puts.
No ...accurately anticipated future result....:cheesy: ...never fails....:cheesy: ...all of this is determined in advance....superfly said:wearing a safety harness = calibrated betsize?
interesting: value of options change, sometimes return is less then gilt and maybe sometimes more then gilts?Profitaker said:If you sized your trades such that a 40% drop would only "eat a few % of stake" then the premium received against the margin required would be so small that you'd get a better return on capital at the risk free rate, i.e, gilts.
superfly said:
wearing a safety harness = calibrated betsize?
The need to understand risk is always at a "personal level", whether that involves crossing the road, driving a car, scuba diving, trading options, or any other activity you care to mention.linesniffer said:So, a person needs to understand the risks involved, at a personal and at a market level.
So Socrates in that case , how do you do that......................?SOCRATES said:No ...accurately anticipated future result....:cheesy: ...never fails....:cheesy: ...all of this is determined in advance....![]()
Textbook rubbish again.Profitaker said:The need to understand risk is always at a "personal level", whether that involves crossing the road, driving a car, scuba diving, trading options, or any other activity you care to mention.
If you don't understand the risks involved in any of the above activities you will surely get badly hurt, if not killed. Sooner or later.
I can tell you.....superfly said:So Socrates in that case , how do you do that......................?
Just kidding, weekend :cheesy:
Exactly so. On the face of it, because the option writer creates and sells a contract out of thin air the returns are infinate, at least in theory. In practice however, he has to post margin, so the return on capital (%) is a direct function of premium / margin.superfly said:interesting: value of options change, sometimes return is less then gilt and maybe sometimes more then gilts?
Ha Ha Ha ...impoverished ingnoramus you are....the object of the excercise is not the size of the profits...it is the fact that they are consistent....Ha Ha Ha ....and decided in advance of the event....does your head in.....Ha Ha Ha.Profitaker said:Exactly so. On the face of it, because the option writer creates and sells a contract out of thin air the returns are infinate, at least in theory. In practice however, he has to post margin, so the return on capital (%) is a direct function of premium / margin.
Psssssssssst do not mention margin to the Soc - he has no clue - ask yourself why ?
No.linesniffer said:Can the problem of margin be overcome by the writer?
I know this lot here are really desperate...but I did not include you with them...I am shocked..superfly said:Ok, deal
It is exaclty equal, evidently, because for every option seller there must be.....a buyer.linesniffer said:What is the most popular option trade, the write or the buy?