quick options question re: selling puts

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Old Sep 26, 2017, 3:48pm   #1
 
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Joined Jan 2017
quick options question re: selling puts

hi,

newbie question if you don't mind.

Just started playing around with
options. Using trade ideas to find "low of the day" alerts and "entering
to sell" put options on high sentiment bullish stocks. (entering at their
low points).

i sold about 10 puts in 10 contract lots and collected about 7k in premium.

within 24 hours all of the stocks were showing above my breakeven point
using TC2000 platform. In TC2000 it shows a positve number on the strike
price line.

a couple were above strike price showing green and every stock moved up
above intial entry.

so to test i started closing the trades by buying back.

and my 7k quickly evaporated and put me back to where i started.

now if every trade was showing that i was above my break even point
why am i losing on every trade? (i understand about bid-ask spread but
the spreads were not that wide in all cases, i was closing the trades at market)

thanks for your response.
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Old Sep 28, 2017, 9:47pm   #2
Joined Oct 2015
Quote:
Originally Posted by newbietrader66 View Post
if every trade was showing that i was above my break even point why am i losing on every trade?

hi nt66

can you screenshot the transactions from your transaction history? open and close

you sold naked puts?

Last edited by Kaeso; Sep 28, 2017 at 10:10pm.
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Old Sep 30, 2017, 5:34pm   #3
Joined Oct 2014
Quote:
Originally Posted by newbietrader66 View Post
hi,

newbie question if you don't mind.

Just started playing around with
options. Using trade ideas to find "low of the day" alerts and "entering
to sell" put options on high sentiment bullish stocks. (entering at their
low points).

i sold about 10 puts in 10 contract lots and collected about 7k in premium.

within 24 hours all of the stocks were showing above my breakeven point
using TC2000 platform. In TC2000 it shows a positve number on the strike
price line.

a couple were above strike price showing green and every stock moved up
above intial entry.

so to test i started closing the trades by buying back.

and my 7k quickly evaporated and put me back to where i started.

now if every trade was showing that i was above my break even point
why am i losing on every trade? (i understand about bid-ask spread but
the spreads were not that wide in all cases, i was closing the trades at market)

thanks for your response.


what expiry were the puts and where was volatility when you entered and exited your positions?

Also, how do you hedge these short puts?
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