Keeping track of deltas

Profitaker · Nov 5, 2005

bulldozer said:
1. There is NO "IF AND BUTS" Mr Frugi was NOT discussing CALLS he was discussing PUTS!

That’s right he was, and a quality p!ss take too, at your expense I might add LOL.

bulldozer said:
so why are you discussing CALLS?

Because you were arguing that option writers have the edge over buyers and point to the Goog example above to somehow re-enforce your point. But the concept of writing options isn’t limited to writing Puts you know. It also includes writing Calls, and in this real life example (which you took great delight in posting up) I’m pointing out that while Put writers made a profit, the Call writers made a loss. In the same way that Put buyers made a loss and Call buyers made a profit.

So I’ll ask you again, who had the edge ? And why ?

If you want to discuss "edge" then fine, if not GFY

bulldozer · Nov 5, 2005

Profitaker said:
That’s right he was, and a quality p!ss take too, at your expense I might add LOL.

Because you were arguing that option writers have the edge over buyers and point to the Goog example above to somehow re-enforce your point. But the concept of writing options isn’t limited to writing Puts you know. It also includes writing Calls, and in this real life example (which you took great delight in posting up) I’m pointing out that while Put writers made a profit, the Call writers made a loss. In the same way that Put buyers made a loss and Call buyers made a profit.

So I’ll ask you again, who had the edge ? And why ?

If you want to discuss "edge" then fine, if not GFY

Mr Profitlooser, Mr Copout,

Mr Mouse,

Your just one BIG FRUIT CAKE ready to be eaten up with just ONE bite!

:cheesy:

And whats more your really making yourself a bigger FOOL than Mr Pitscum!

:cheesy: You are very disapionting wiv the quality of questionsand your points of arguements!! :cheesy:

Also your reading and your memory and your knowledge on options is NOT as sharp/good as you think!!

:cheesy:

Right here is a few points about writers that you dont know about and plz dont think your smart

cause i know that you want me to reveal my "HEDGE and my EDGE" and my method in option writing.

1. there are writers and there are writers! does your monkey brain know what i mean by this??

If NOT? i'll try to give you a little FREE help!

2.Theres writers on ATM and ITM and DOTM and DITM You have to figure out which writer has the edge on those 4.

3.Next point, there are writers on american style and writers on European style! I write one style that has the edge over the other.

4. I can write CALLS on a underline and also write PUTS on same underline and still make profits on BOTH positions!! Now heres is a wager for you? If what I'm saying is NOT true on this point i will give you a $1,000 to your $100 [10/1] you have until sunset tmrrow to accept my offer!

AND THIS WILL PROVE THAT YOUR ARGUEMENT THAT THE CALL WRITER MADE A LOSS! IF THE PUT WRITER MADE A GAIN!. is WRONG :cheesy: I'm saying that what your saying is cra p! It is possible for the WRITTEN PUT to make a profit aswell as the WRITTEN CALL on same stock/underline!on same month! Now if you STILL disagree? i am prepared to raise my wager [with you Mr looser] to $2000 to your little $100. Now is it on or NOT!?!? dont forget the viewers need an answer too!

ITS MY brains against yours!! My $2000 against your $100.
I can close a SHORT[written] PUT AND CLOSE A SHORT [written] CALL ANY TIME I CHOSE at the SAME TIME and make a profit ON BOTH!!

:cheesy: The viewers/members can place bets too and i will pay all those that take up my chalenge!! And whats more if I'm proved to be correct i will give the winning bets to charity!

Sorry for the comeback folks

but i was asked to make a reply! and I'm not one to dissapoint!

:cheesy:

The Maltese Bull

I dont apologise when I'm right/correct! sorry thats just the way I am!

:cheesy:

bulldozer · Nov 5, 2005

Mr $100,000Mouse,
Your quote."That’s right he was, and a quality p!ss take too, at your expense I might add LOL."
from post no 333 .

Mr frugi is smarter than you!

He knows he has lost the wager! and that he is BEAT! and wisely is keeping low !

:cheesy: He also knows by my comments that his position will continue to lose money and i continue to win the arguement!

His losses are growing by the day and by friday night his losses will be in exess of $600 on each contract! and before Xmas day arrives his losses will be OVER $1,000. :cheesy:

[on each contract]

So plz help to get the cute LOUD little gold fish out of the Indian ocean before the sharks get to him! if you know what i mean?? :cheesy:

I wonder what exuse this cute LOUD gold fish is going to give for NOT paying up?

Maltese Bull

May God continue to bless the smart writers to continue to take the money FROM the so called smart buyers! :cheesy:

Pitscum · Nov 6, 2005

another encore????nope off blunkett, teflon bid

Profitaker · Nov 6, 2005

I’ll keep it short….

1. No, there are writers and buyers. That’s it.

2. I’m asking you who has the edge, and why ? You think writers have the edge – fine, explain why…..

3. European does not have the edge over American style options. European options are worth less because they cannot be exercised early. Early exercise has a monetary value, and if you can find American and European options trading on the same underlying asset, you could sell the American option and buy the European option thereby pocketing the exact value of early exercise. It’s called an Atlantic spread.

4. Trading combinations of short options doesn’t give you any edge. For example shorting Puts and shorting Calls as a straddle or strangle has no more edge than buying the same combination.

Bigbusiness · Nov 6, 2005

Hi bull,

I didn't think you accepted frugi's wager. Here are the posts. It looks like you don't want to accept the bet but now frugi has to pay up. Nice way of doing it so that you can't lose

frugi said:
Bull,

All that writing and still no book?

This might be up your street

GOOG Mar 2006 350 puts are currently on sale for $18.30.

In the interests of fun and possibly charity, might you be able to offer me a BETTER price, kind sir, say perhaps a round $18 for ease of calculation? :?: :?: ... if so I would like to buy one from you. :-0 Premium at a discount, if you like.

I can send monies by Paypal for your convenience and my satisfaction (say a 1/100th of full size, or I might be accused of taking this seriously )

They've got Property of Bull written all over them, I'd say: they're well out of the money AND drenched with lashings of lovely time value to decay - at whose expense? MY expense, of course. :cheesy: :cheesy: $18 of fat juicy premium, straight into your pocket. Consider it a donation to a charity of your choice.

Please good Bull, don't pass up this SUPERB opportunity for you to offload a delightful wasting asset onto another SILLY blind mouse. Remember I gamble in vega, eat gamma with pineapple and watch plays in the theta ... a sitting duck, or is that wodent?

PS :cheesy: This isn't in any way a challenge I merely saw a chance to use the excellent Bulldozer price improver market-making service and seized it with my sharp teeth. :

PPS Though it probably sounds churlish, I must reserve the right to sell it back to you at any time before expiry (at market bid price minus the original discount), if by any scintilla of an iota of a minuscule chance it becomes worth more than I paid you for it :cheesy: :cheesy: In turn I will donate the original premium + 20% of any profit to charity.

What say you?

bulldozer said:
================================================================

WOW! WHATS ALL THIS NOISE? from a Forum moderator too
How did this cute little Gold fish end up in the middle of the INDIAN ocean?amongs all the SHARKS

I normally dont reply to posts like these until i recieve the 3rd post.
Sorry thats just one of my rules, I can asure you i have a good reason for these types of rules.
I'm a dissaplined Option writer and every thing has to be right before i make my move!

So you need to come down to my rules SIR! PLZ

I look forward to your next 2 posts. And i will assure you i will reply to you more fully.

Rgrds

Bull
Monkeys or MICE that mess with BULLS always end up getting BOTH HORNS! Like i said many times before>> In most cases its sooner rather than latter! and also plz remember BULLS dont have BREAKS they cant stop! if a monkey or mouse happens to be in his path especialy when he is doing over 20 mph! :cheesy: its curtains for the little creatures

Profitaker · Nov 6, 2005

Bigbusiness said:
Hi bull,

I didn't think you accepted frugi's wager. Here are the posts. It looks like you don't want to accept the bet but now frugi has to pay up. Nice way of doing it so that you can't lose

Frugi is not an isolated case - Mr.B also believes that I accepted one of his many "wagers" LOL

Mr.B has short term memory loss, cannot think logically, behaves irrationally, is emotionally unbalanced in the extreme, and I'm sure he's suffering from some sort of psychotic disorder - schizophrenia perhap ? Any medical people lurking ?

bulldozer · Nov 6, 2005

BB,
What you said is very true! indeed!

1.Mr Frugi [goldfish] Came on to me with his offer! Fact or not?

2. I was wiling to take on his offer but his conditions are NOT the conditions that are in line with option trading! The writer has the choice which strike to chose, what month to chose and how many contracts to chose. Mr Frugi wants to make ALL the choices for the writer! IT does NOT work that way in OPTION TRADING. Fact or not?

3. Mr Frugi positions are losing money and the WRITER is MAKING/TAKING money from Mr Frugi's account! Fact or not?

4. Mr Frugi does not like writers! well thats the impression i got from his first post to me and perhaps he will also make that he's last post to me too!?

5. Mr Frugi was asked by me to post another 2 posts to make his attack or OFFER more clear so that we can set a wager on FAIR conditions. The writer has the right to close position when the writer decides TOO and take profits at a level HE choses TOO. But Mr frugi did NOT come back!?
Fact or not?

6. Mr Frugi position is now worth $1,400 on each contract! Fact or not? and it will continue to LOSE money while position remains open and leading to its expiry date! Now if any one including Mr frugi and Mr profitlooser wants to chalenge my prediction? I am prepared to offer the FIRST 5 people a wager of $1,000 to their $500 that 2/1 with the MALTESE BULL

The LOSERS pay to the WINNERS favourite charity! we dont want to delay this debate so plz acccept the offer or reject the offer but lets not get stuck with arguements and should we use lawyers etc etc etc. If any one is pretty sure the M Bull is wrong than YOU must take my offer or GO AWAY! Fact or NOT? accept or reject! You cant have both!

This post is addressed no just to you BB so plz dont take this the wrong way! Mr frugi started this whole thing NOT ME!! Fact or NOT?

So Mr Frugi you can now come out and make a decision PLZ! But plz dont start something and leave it unfinished!

Come back and close this whole saga or lets continue to its destined conclusion! There can only be ONE who can be right! Now be a MAN and come back!

Bull

bulldozer · Nov 6, 2005

Profitaker said:
Frugi is not an isolated case - Mr.B also believes that I accepted one of his many "wagers" LOL

Mr.B has short term memory loss, cannot think logically, behaves irrationally, is emotionally unbalanced in the extreme, and I'm sure he's suffering from some sort of psychotic disorder - schizophrenia perhap ? Any medical people lurking ?

Mr, Profitloooser, Mr Copout,

Mr Frugi made an WAGER offer to me! it was between 2 people and i dont remember any of us 2 inviting you!
However you took it upon yourself to put your nose where it clearly did NOT belong and NOT invited to ethier.
But now that your are in and made statements that are NOT true on OPTIONS and ME ! I am prepared to prove you wrong! Now lets take ONE item at a time plz!

1. You said that the CALL writers LOST MONEY on GOOG if the PUT WRITERS WON.

[post 324, 333 ]

Lets deal with this ONE first! and then we will deal with the other issues that you want to hear from me > ie how to hedge, who has the edge etc etc. AT this point in time Mr Frugi is the buyer of GOOG options and the FACTS are that he is LOOSING money to the WRITER! So in real terms [ just for you mr profitllooser] the buyer is loosing $$$$$$$$ and the writer is GAINIG those $$$$$$ is this FACT OR NOT??

Right lets deal wiv point one [above] first! shall we?

NOW do you still stand by your comments on point one.
Cause i can prove that it is POSSIBLE To do an OPTION strategy on a stock/index where by i CAN WRITE A PUT AND A CALL ON SAME STOCK/INDEX WITH SAME EXPIRY DATE AND MAKE PROFIT ON BOTH POSITIONS! [before expiry day] And i am prepared to offer you a wager of $1,000 to your $1,000 or if you like i can also offer you $1,000 to your little $100
The choice is yours Mr Profitloooser I will give you another sunset deadline to decide my generous offer! i will also offer you any sunset you like within the first 5 sunsets from today! This offer is also to you MR Frugi if you want it?

Plz lets keep it simple and deal with this POINT first and then we can discuss the others. Do you understand what I'm saying here or do we need Mr Soc to explain more clearly to you.

Bull

Bigbusiness · Nov 6, 2005

bulldozer said:
BB,
What you said is very true! indeed!

1.Mr Frugi [goldfish] Came on to me with his offer! Fact or not?

2. I was wiling to take on his offer but his conditions are NOT the conditions that are in line with option trading! The writer has the choice which strike to chose, what month to chose and how many contracts to chose. Mr Frugi wants to make ALL the choices for the writer! IT does NOT work that way in OPTION TRADING. Fact or not?

3. Mr Frugi positions are losing money and the WRITER is MAKING/TAKING money from Mr Frugi's account! Fact or not?

4. Mr Frugi does not like writers! well thats the impression i got from his first post to me and perhaps he will also make that he's last post to me too!?

5. Mr Frugi was asked by me to post another 2 posts to make his attack or OFFER more clear so that we can set a wager on FAIR conditions. The writer has the right to close position when the writer decides TOO and take profits at a level HE choses TOO. But Mr frugi did NOT come back!?
Fact or not?

6. Mr Frugi position is now worth $1,400 on each contract! Fact or not? and it will continue to LOSE money while position remains open and leading to its expiry date! Now if any one including Mr frugi and Mr profitlooser wants to chalenge my prediction? I am prepared to offer the FIRST 5 people a wager of $1,000 to their $500 that 2/1 with the MALTESE BULL

The LOSERS pay to the WINNERS favourite charity! we dont want to delay this debate so plz acccept the offer or reject the offer but lets not get stuck with arguements and should we use lawyers etc etc etc. If any one is pretty sure the M Bull is wrong than YOU must take my offer or GO AWAY! Fact or NOT? accept or reject! You cant have both!

This post is addressed no just to you BB so plz dont take this the wrong way! Mr frugi started this whole thing NOT ME!! Fact or NOT?

So Mr Frugi you can now come out and make a decision PLZ! But plz dont start something and leave it unfinished! Come back and close this whole saga or lets continue to its destined conclusion! There can only be ONE who can be right! Now be a MAN and come back!

Bull

Fact, I was paying you a compliment. I like the way you want frugi to pay up when you didn't accept the wager. A risk free strategy

Fact, I like option writers. I have made more money writing options and taking the premiums than I have buying calls and puts. Granted, I was using covered calls, so no large risk on my trades but it was still good to get the premiums.

Fact, I will never have a bet with you

Profitaker · Nov 6, 2005

bulldozer said:
Plz lets keep it simple.....

I always try to when replying to you.

When there is movement in the underlying (as in the Goog case) Puts decrease in value and calls increase in value. So if you wrote Puts you'd have made a profit and if you wrote Calls you'd have made a loss and if you wrote Puts and Calls you'd have made a profit if the IV sold was more than the underlying vol and a loss if the IV sold was less than the underlying vol.

Is that simple enough ?

bulldozer · Nov 6, 2005

Profitaker said:
I always try to when replying to you.

When there is movement in the underlying (as in the Goog case) Puts decrease in value and calls increase in value. So if you wrote Puts you'd have made a profit and if you wrote Calls you'd have made a loss and if you wrote Puts and Calls you'd have made a profit if the IV sold was more than the underlying vol and a loss if the IV sold was less than the underlying vol.

Is that simple enough ?

=========================================================

Mr Profitlloser, Mr Copout,

DONT COMPLICATE YOUR ANSWER TO MY QUESTION AND OFFER!

:cheesy:

So PLZ ANSWER YES or NO TO THE WAGER. LET me repeat my arguement an why i accused you of being wrong!
I CAN DO A OPTION POSITION ON A STOCK OR INDEX ! WHEREBY I CAN WRITE BOTH PUTS AND CALLS AND MAKE PROFIT ON BOTH POSITIONS BEFORE EXPIRY!! NOW ,YOU ARE SAYING IN POST 324 and 333 IT CANT BE DONE! SO PLZ TAKE THE WAGER!

:cheesy:

its very simple either it can be done or it cant be done! and i;m saying it CAN be done! Writing a PUT and a CALL with same stock/index and wiv same expiry!! and BOTH POSITIONS TO SHOW A PROFIT!

Bull

SOCRATES · Nov 6, 2005

Profitaker said:
I always try to when replying to you.

When there is movement in the underlying (as in the Goog case) Puts decrease in value and calls increase in value. So if you wrote Puts you'd have made a profit and if you wrote Calls you'd have made a loss and if you wrote Puts and Calls you'd have made a profit if the IV sold was more than the underlying vol and a loss if the IV sold was less than the underlying vol.

Is that simple enough ?

No, this is NOT the case,

as Bully has already explained to you in more detail than you justly deserve, but you still choose to argue with him.

What I observe in this is that Bully is very sure of his ground whereas you persist in trying to shift the goalposts.

What you ought to do, if you really would like to try to prove him wrong, is to put your money where your big mouth is, and accept his bet, which is exceptionally generous not only in the odds he is offering but with regard to his patience in giving you an extension of time as well.

Unheard of !

Just accept his bet or keep quiet and do not continue to blight us with your ignorance on this subject.

PUT UP OR SHUT UP, that is the best thing for you to do.

Profitaker · Nov 6, 2005

Bulldozer said:
I CAN WRITE BOTH PUTS AND CALLS AND MAKE PROFIT ON BOTH POSITIONS BEFORE EXPIRY!! NOW ,YOU ARE SAYING IN POST 324 and 333 IT CANT BE DONE!

No, I didn’t say you couldn’t make a profit before expiry. You need to read those posts again, and maybe get some help with the big words this time.

SOCRATES said:
Just accept his bet or keep quiet and do not continue to blight us with your ignorance on this subject.

I place bets most days in the market, and the market is much bigger than you two will ever be. Why would I want to accept a poxy wager from cloth ears ? BTW, why do you post in pink ?

Let me try a simple concept, simple enough for you two, just so that we can get down to talking “edge” or “advantage” and try and untrash this thread.

Imagine a balanced 6-sided dice, where every number has the same probability of landing up. Let’s also say that whatever the number which lands is the payout in monetary terms. For example, if you threw a 5 you’d be paid £ 5, throw a 4 you’d be paid £ 4 and so on. With me so far ? Good, hang on in there geniuses.

Now suppose there is such a thing as a call option on the number 5. What’s it worth ? How do you value / price it ?

What if I said there was a call option on the number 5 trading in the market at 90 pence, would you buy it or sell it ?

What if I said there was a call option on the number 3 trading in the market at 40 pence, would you buy it or sell it ?

What if I said there was a call option on the number 3 AND the number 5 trading as a combo for £ 1.20, would you buy it or sell it ?

This is very basic stuff pertaining to “edge” and I await your answers with baited breath LOL

bulldozer · Nov 6, 2005

Profitaker said:
No, I didn’t say you couldn’t make a profit before expiry. You need to read those posts again, and maybe get some help with the big words this time.

==================================================================

Mr Profitlooser, Mr Copout,

So NOW plz explain your comments on posts 324 and 333 Where you clearly say >>the PUT WRITER WINS AND THE CALL WRITER LOSE.
Do you want to change your comments on those posts? especially concerning the written CALL?? :cheesy: I think you sound confused and i also think your confusing the viewers TOO!

And plz TAKE AWAY all those "IF's" from your last post! DEAL wiv my position/arguement first before you open another arguement wiv another member! :cheesy:

Bull

Profitaker · Nov 6, 2005

Oh boy, how many verbal circles can you two do in a single day. You're lucky it's raining here and I have nothing better to do than engage empty vessels (always good sport).

If you want to discuss "edge" you will first need to understand post 346 before we can make any progress.

Do either of you understand post 346 and the dice analogy ?

bulldozer · Nov 6, 2005

Profitaker said:
Oh boy, how many verbal circles can you two do in a single day. You're lucky it's raining here and I have nothing better to do than engage empty vessels (always good sport).

If you want to discuss "edge" you will first need to understand post 346 before we can make any progress.

Do either of you understand post 346 and the dice analogy ?

=====================================================================

NO NO NO I dont want to discuss post 346 and the "IF's and DICE" at the moment! later perhaps?

But first deal wiv your comment on the WRITTEN CALL in post 324 and 333 post where you repeatdly said the WRITTEN CALL LOSE and the WRITTEN PUT WINS.
Cause i can prove i can make profits from BOTH WELL BEFORE expiry date!

:cheesy:
And that it is possible to have a winning written PUT and winning written CALL!

Bull

bulldozer · Nov 6, 2005

Mr IF'sandDICE, Mr Copout, Mr $100,000MOUSE,

Plz stay out of my affairs especially wiv Mr Furgi and his offer to me.! Or any other debates/offers i have wiv others that does NOT concern you. I'm very happy for you to continue trading your style, PLZ DONT CHANGE IT.

Mr Frugi [Cute-goldfish ]

When you do manage to get out from the Indian Ocean? Can you plz answer my questions put to you a few posts ago?
And I'm also intriged as to WHY you want to thow all that JUICY PREMIUMS to me? Theres so many other writers out there who are more than happy to take your $1,800 WHY ME? Do you have something against the MALTESE PEOPLE or the MALTESE Bull??

I'LL give you some free advice [cause your not going to get it from the other 6 mouseketeers] DONT WAIST YOUR HARD EARNED CASH BUYING OPTIONS!! GIVE IT TO YOUR WIFE!! SHE WILL FIND SOMETHING USEFULL TO DO WIV IT I'M SURE!! Dont give it to the writers cause you have very little chance of seing it again!!

And you will be lucky to have more than $800 left from that $1,800 by XMAS.

Happy swimming

Bull

frugi · Nov 6, 2005

I never knew a tongue-in-cheek $18 bet would could such a kerfuffle.

Bull,

1. Of course I have nothing against option writers or the Maltese (brave "nurse of the Mediterranean" in WW2), in fact I rather admire both. I find this thread, especially your posts, hugely entertaining and often informative. I am always keen to pick up knowledge in a new field of which I am woefully ignorant, especially when there's humour among the Greeks. :cheesy:

2. I chose you for the wager because:
i. I thought you would find my terms so irresistible that you might grant me a small discount on the premium and, more importantly
ii. You would kindly allow me to place a small 1/100 size wager in the name of fun and charity. The full $1800 I'd have had to spend in the market was a bit steep, to say the least.

3. I didn't post any revisions after the initial wager post because my terms were clearly stated and not open to negotation; all that was required was a simple "Yes" or "No" from you. I'm sorry if I did not make this clear. It's a shame you didn't take me up on it as you would now be at least $4 in profit and as you say quite likely to keep the entire $18 by Xmas. As Bigbusiness has pointed out, I'm not obliged to pay anyone anything cause you didn't accept my terms.

4. The hypothetical postion is indeed haemorrhaging rather heavily now, but it's only three days into the challenge - please give the little fishy a chance to shake his fins. March is a long way away and it is feasible GOOG will drop well below $350 sometime between now and then. It's not a scenario I would like to bet any more than, hmm, say, $18 on, however, which is why I came to you.

5. I bought some CAT puts some time ago. I'd imagine the writer was a bit peeved when CAT hit the bottom of that wedge after earnings.

http://www.trade2win.com/boards/showthread.php?p=206630&highlight=cat#post206630

Have a nice evening sir. For what it's worth I have now donated £18 to Children in Need, so our wager wasn't entirely in vain.

Best regards,

Cute Goldfish

bulldozer · Nov 6, 2005

frugi said:
I never knew a tongue-in-cheek $18 bet would could such a kerfuffle.

Bull,

1. Of course I have nothing against option writers or the Maltese. I find this thread, especially your posts, hugely entertaining and often informative. I am always keen to pick up knowledge in a new field of which I am woefully ignorant, especially when there's humour among the Greeks. :cheesy:

2. I chose you for the wager because:
i. I thought you would find my terms so irresistible that you might grant me a small discount on the premium and, more importantly
ii. You would kindly allow me to place a small 1/100 size wager in the name of fun and charity. The full $1800 I'd have had to spend in the market was a bit steep, to say the least.

3. I didn't post any revisions after the initial wager post because my terms were clearly stated and not open to negotation; all that was required was a simple "Yes" or "No" from you. I'm sorry if I did not make this clear. It's a shame you didn't take me up on it as you would now be at least $4 in profit and as you say quite likely to keep the entire $18 by Xmas. As Bigbusiness has pointed out, I'm not obliged to pay anyone anything cause you didn't accept my terms.

4. The hypothetical postion is indeed haemorrhaging rather heavily now, but it's only three days into the challenge - please give the little fishy a chance to shake his fins. March is a long way away and it is feasible GOOG will drop well below $350 sometime between now and then. It's not a scenario I would like to bet any more than, hmm, say, $18 on, however, which is why I came to you.

5. I bought some CAT puts some time ago. I'd imagine the writer was a bit peeved when CAT hit the bottom of that wedge after earnings.

http://www.trade2win.com/boards/showthread.php?p=206630&highlight=cat#post206630

Have a nice evening sir. For what it's worth I have now donated £18 to Children in Need, so our wager wasn't entirely in vain.

Best regards,

Cute Goldfish

===============================================================
Hello Mr Frugi,

Thanx for coming back and being honest and for your donation to the charity.

Below are a FEW free tips for you from an old timer!

Of course the choice is ultimatly yours wether you decide to accept or refuse the tips.

1. There is nothing wrong at being wrong as long as you have learned something from it?!

2. Theres nothing wrong in having a friendly bet on options choice of trade. But each person has to be satisfied that the RULES are within the options rule book. [yours was not]

3. Always make sure that the trade has MORE than 85% chance of success rate before comiting one self.

5. Always believe the stastistics on who has the advantage over the other! EVEN if you disagree wiv the statistics!! And especialy if you dissagree with statistics.

6. There are at least 6 different types of OPTION WRITERS and NOT JUST ONE as Mr Profitaker would have you believe! The fact that there are more than 6 types of writers proves that NOT ALL writers are the same! and the quicker you ACCEPT these facts the better your trading will become!

7. If you chose NOT to believe ALL the points mentioned in NO 6 above as Mr Profitaker has chosen NOT to believe! Your future bets against ME or ANY other writer PUTS YOU at a HUGE disavantage.

8. This is the MOST important POINT in OPTION TRADING!! BELIEVE that options are a waisting asset and that the writer always has the advantage over the buyers! EVEN IF THE MRKT is moving in your favour.

9. A good successful option writer is hard to beat! by the buyers! why? cause of the following reasons: He has a big pot to see off any margin-call problems. He knows when to shift loosing position. He knows how to hedge positions to limit his losses. He knows how LONG he can hang on to a position. He knows how to convert a bad position. He knows how to reduce margin if he needs to. He knows how to raise extra capital to hold on to positions. He knows that the brokers RULES on margin is in HIS FAVOUR as a writer. He knows how much profit he will make at any time frame. He knows which strike and month gives him the most profits. He knows which of the 5 strikes is the best DELTA for his chosen trade> ATM,or ITM, or OTM, or DOTM, or DITM.

10. Forget most of the CRAP our friends Mr Profitaker/Mr Piscum say!

11. If you believe in the same way as the 2 persons mentioned that there is NO difference in american style and EU style and that they are equal to each other in advantage ways? then plz spend a $ or £ and phone up LIFFE in london and ask them when did they REMOVE the american style options on FTSE index and replaced it with EU STYLE and WHY.

12. Writers are like the bookies/casinos they are happy to pay the winners when they win! and good option WRITERS player NEVER lose! cause he has more than one plan up his sleeve on hedges!
I am NOT prepared to give you any more golden NUGGETS as it would not be wise for me and my "EDGE or HEDGE"

and also because i made a promise to Mr Socrates that i would NOT give more nuggets than i already have in my posts and also because I'm a MAN that keeps his word! and NOT a like those MICE wiv names beggining wiv the letters P.

Happy trading

Bull
and plz remember one thing! WISE people do NOT mess with good experienced writers

Keeping track of deltas

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