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This is a discussion on Option strategies within the Futures & Options forums, part of the Markets category; Stev, Re: footsie I'm looking for more weakness on footsie for monday & tuesday to write some OTM puts with ...

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Old Jun 24, 2005, 9:48pm   #46
Joined Jan 2005
Stev,
Re: footsie
I'm looking for more weakness on footsie for monday & tuesday to write some OTM puts with gd prem's . Dow closed below 10,300 , oil still looking strong. This should knock off a few more pts
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Old Jun 26, 2005, 10:26am   #47
 
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Windlesham1 started this thread dozer-just picked up your response about writing far month options,and while margin may be slightly smaller,your scope for adjustment is severely limited. I was away last year and on Aug 30th,the market went stupidly high-about 4 % in a few days,and didn't look back. Had I been in a far dated position I would have been crucified,but by rolling near month and maximising theta I got out of a 48K loss for a modest sum after 3 months(yes I have big margin). I'm not telling anyone else how to trade I hope,as if we all try and do the same thing,it won't work. I am looking forward to spreadbetting options as the use of stops will be available,allegedly. I know prices will be carp,but we are royally scr**ed anyway. Hope my rigging of the Iran election,and its knock-on effect on oil gets Fettered Chinos out of the hole.(just kidding)
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Old Jun 26, 2005, 10:43am   #48
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Quote:
Originally Posted by Windlesham1
dozer-just picked up your response about writing far month options,and while margin may be slightly smaller,your scope for adjustment is severely limited. I was away last year and on Aug 30th,the market went stupidly high-about 4 % in a few days,and didn't look back. Had I been in a far dated position I would have been crucified,but by rolling near month and maximising theta I got out of a 48K loss for a modest sum after 3 months(yes I have big margin). I'm not telling anyone else how to trade I hope,as if we all try and do the same thing,it won't work. I am looking forward to spreadbetting options as the use of stops will be available,allegedly. I know prices will be carp,but we are royally scr**ed anyway. Hope my rigging of the Iran election,and its knock-on effect on oil gets Fettered Chinos out of the hole.(just kidding)
================================================== ===================

Wind,
How many yrs did u say u did Options for?

My far dated Short/ writen OTM puts dont give me any probs whats so ever if mrkts rise 1-1,000 %.
As for Adjustments:? If you can adjust the short dated, adjusting the long dated has the same number of choice adjustments PLUS more.
I can understand why some people see it in the way you do.
There was another guy who said i was mad for writing PUTS! I cant remenber who it was without reading the posts again, i think it was in the futures thread, it may have been Jafa from Perth.
Having full understanding of the greeks/hedge the advanced traders have the advantage on the rest.
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Old Jun 26, 2005, 11:03am   #49
 
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Windlesham1 started this thread Dozer-I failed to mention that I was short CALLS- I have never been caught out with short puts-in 4 years. A smart trader would have realised what I was talking about, however! Also note that when I started doing this,options were only available 3 months ahead. As I am happy trading like I do-and knowing how many traders have been blown up because they couldn't adjust.I think we can trade at variance,and profitably.
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Old Jun 26, 2005, 2:30pm   #50
 
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Quote:
Originally Posted by osho67
Anybody selling options on other indices/futures except ftse. FTSE options volume is very low. I noticed volume on ESTX50 is good. Any other products? Thanks
I am selling naked puts on qqqq dia spy bbh oih. premiuim are low as i sell 1 month and OTM
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Old Jun 26, 2005, 10:53pm   #51
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Quote:
Originally Posted by Windlesham1
Dozer-I failed to mention that I was short CALLS- I have never been caught out with short puts-in 4 years. A smart trader would have realised what I was talking about, however! Also note that when I started doing this,options were only available 3 months ahead. As I am happy trading like I do-and knowing how many traders have been blown up because they couldn't adjust.I think we can trade at variance,and profitably.
Wind,
I'm beginning to see what ur on about! I thought u were refering to put writing. What really got me confused is when u said a rising mrkt was to ur disavantage. Thats when i thought he must b talking Short naked calls?

Well i did say in my past posts [not sure which thread] that its not sensible writing CALL's! Unless you have a healthy profit in ur account from past trades and that ur prepared to risk some of that profit. The reason i say this is because the mrkt generally moves in the direction or towards ur strike! But with the puts its the opposite effect! the mrkt generally moves away from ur strike price! This is the reason u had 4 good yrs without getting caught. Plus i think ur broker allows you u to trades naked puts cause you know how to get out of trouble when trouble is heading ur way.

Its good to hear that u never got caught out in 4 yrs, I believe you totally! but im not sure others will? but then again who cares what others think about ur method of trading.

When i do naked calls i rarely risk more than 20% of my total profits for that yr.

Finally, stick to what suits u best! If puts makes u feel good and happy? why mess with the CALL's. Unless of course you like doing short strgls? When i do them i make sure i keep my both eyes on the Call legs.

I think the footsie wiil continue down tmrrow.

How do you see the footsie?

Bull
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Old Jun 26, 2005, 11:06pm   #52
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Wind ur quote,
"As I am happy trading like I do-and knowing how many traders have been blown up because they couldn't adjust.I think we can trade at variance,and profitably."
================================================== =========

They cant adjust because the brokers wont let them in most cases! mainly because of marg rules. Adjusting sometimes makes positions on margin-call and thats the MAIN reason the positions are left to run and closed at a loss or liquidated if not adjusted. No UK broker has the right to close positions or liquidate without giving the client the chance to adjust or pump more money in to hold positions. Apparantly US brokers including IB can close or liquidate WITHOUT notifiying clients.

Last edited by bulldozer; Jul 1, 2005 at 12:25am.
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Old Jun 27, 2005, 10:38am   #53
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Wind,Osho,Steve.
Todays Put trades: Sent to ur PM.

Bull
Always xpect the unxpected!!
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Old Jul 1, 2005, 12:27am   #54
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FTSE 100 todays performance

Index Value: 5,113.20
Trade Time: At close
Change: +4.10 (0.08%)
Prev Close: 5,109.10
Open: 5,109.10
Day's Range: 5,097.10 - 5,138.20
52wk Range: 4,283.00 - 5,121.90
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Old Jul 1, 2005, 8:40am   #55
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FTSE just mental this morning. Big gap down from US sell off last night - not only bought back but bought to +14 within 25 mins of the open. That represents a figure about 40 points above where the spreadbetters were calling FTSE at last nights US close. Not good for my written 5125 Calls (July) but made some very easy money on the way up. The question is, when is this going to end? US Markets starting to look pretty nervous in my opinion. S&P's sat right on the edge of a large downside range. I cant remember such a disparity (FTSE making new yearly highs as I type). Amazing.

Steve.
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Old Jul 1, 2005, 10:06am   #56
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Yes steve i now what u mean. Its mind boggling.
Sorry to hear ur still holding those short calls. I've spent some of he scalps profits on buying some julys puts, I've got orders in to buy more, this time on the 5075 strike, trying at single figures.
I cant see the mrkt finishing higher than 5025 for july's xpiry.

Bull
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Old Jul 1, 2005, 10:33am   #57
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You cant see higher that 5025 for July expiry?? You're expecting a fairly heavy reversal then?

Steve.
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Old Jul 1, 2005, 6:08pm   #58
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Normaly theres heavy action in prfit taking by fund managers around May and it did'nd happen, it never happened in June either. They must take profits soon to show records of performance and they also need the bonuses,before they go off on summer holidays. My guess is they expect the mrkts to move a touch higher perhaps to around 5200-5225 and then we''ll see some action.
It would'nd surprise me to see it as low as 5000 or lower b4 july options xpiry. [15th]

What have u done with the short calls [5125]

Bull
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Old Jul 1, 2005, 8:22pm   #59
 
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Windlesham1 started this thread Yet again we see panic buying-based on no particular logic. I think a huge amount is riding on an interest rate cut,but quite why high street sales and property prices dropping, should prompt such a thing is a bit of a mystery to me. I wrote a few Sept 5275C
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Old Jul 1, 2005, 9:10pm   #60
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Windle,
Ur short sept Calls they cant be in profit surely? When did u do them? I've a feeling they would end up ITM or deep ITM at xpiry

Bull
Happy week-end to all.
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