Plain Vanilla Options Trades.

[SOCRATES]

In order to understand the logic behind the trade, do we need to know about "open interest" at all?

Or, where the greatest number of options are held at a certain price, to determine where the pressure is put to prevent prices going beyond a certain point?

Or, the micro-managing reasoning that led you to believe that a certain price was better than another ?

What you ask about is methodology, which is a vast topic.

Discussions about methodology are not appropriate on this thread which is devoted to demonstrate clearly using live rounds and not blanks that it is the writer, the skilled writer that is, always has the edge.

 

[zupcon]

What you ask about is methodology, which is a vast topic.

Discussions about methodology are not appropriate on this thread which is devoted to demonstrate clearly using live rounds and not blanks that it is the writer, the skilled writer that is, always has the edge.

But surely this only proves that YOU have an edge, not the writer in general ?

regards
zupcon

 

[Profitaker]

JoC

A terrorist atack would be one such freak event, or black swans as they are known. But there are many, many others - how about president Bush is assassinated, Israel strikes Iranian nuclear sites and Iran cuts off it's oil supply to the world, North Korea launches a nuclear strike at Tokyo. The list is endless, but it is these type of major events which can blow the put writer sky high.

The put writer gets hit from several angles - clearly the underlying has tanked, but (sometimes more importantly) IV has gone ballistic as fundies buy put protection and writers add to the squeeze by having to close out the position (voluntary or forced) due to massive margin requirements.

 

[CYOF]

In order to understand the logic behind the trade, do we need to know about "open interest" at all?

Or, where the greatest number of options are held at a certain price, to determine where the pressure is put to prevent prices going beyond a certain point?

Or, the micro-managing reasoning that led you to believe that a certain price was better than another ?

As Socrates started this thread, I can not say for certain, but my understanding is as follows:

This is to show all doubters that SELLING options, for consistent trading profits, is indeed the ONLY way to go about it.

In relation to telling you how it is done -well, what do you think the answer to that will be, come on, after all the crap that has been thrown at Socrates for so long, after all the so called PROFESSIONAL TRADERS, whom you all now know are nothing but INSPIRATIONAL TRADERS.

Socrates had to resort to emulate a major Historical event, just to show the doubters that what we speak of is indeed FACTUAL.

Do not expect any more than what is been given - and what is more, I will remind that what is been given is too much, just in case, for I now know only too well, what Socrates means when he says that "traders are born, not made".

When you also realise what this REALLY means, then, and only then, will you UNDERSTAND how it is done.

And this is not been smart - just in case you think it is, it is just - THE WAY IT IS - and the WAY IT IS, can not be changed, no matter how hard we try - period.

 

[Jack o'Clubs]

JoC

A terrorist atack would be one such freak event, or black swans as they are known. But there are many, many others - how about president Bush is assassinated, Israel strikes Iranian nuclear sites and Iran cuts off it's oil supply to the world, North Korea launches a nuclear strike at Tokyo. The list is endless, but it is these type of major events which can blow the put writer sky high.

The put writer gets hit from several angles - clearly the underlying has tanked, but (sometimes more importantly) IV has gone ballistic as fundies buy put protection and writers add to the squeeze by having to close out the position (voluntary or forced) due to massive margin requirements.

Yes, and we're only talking about a 5% decline (with premium) between now and June - you don't need black swans for that, just a poor Q1 reporting season...

 

[SOCRATES]

Hedging "from the off" with short futures has the effect of turning the position into a short straddle. Short Puts + Short Futures = Short Straddle.

Notice that depending on the poster, depending on how the use of language has to be altered to suit the recipient of the message. Some people view politeness and civility as weakness hence...the use of the vernacular is from time to time appropriate, as follows :~


Listen Hey !

This is not a thread for you to come in here and mislead people with your nonsense.

This is a thread to show the skilled writer has the edge over the buyer, always.

Futhermore it is a thread devoted to plain vanilla and not exotics.

Furthermore you have some cheek, first you put me on ignore and you rain insults on me and my friends on this and other sites and then you post graffitti on my thread.

Now... I am getting fed up with you.

On the other thread I asked you a question. In order not to answer it you put me on ignore.

Then CYOF repeated the question to you in post 411.

When are you going to answer the question, next year...or the year after ?

Since you publicly display to have such a low opinion of me are you willing to take a bet that I am wrong and you are right as per my first post of this thread, eh ?

I am willing to widen the odds even further...from 3 to 1 to 4 to 1, let us see if I can entice you to make a bigger fool of yourself than you already have.

In the absence of anything else...I am going to give you some advice.

My advice to you is to keep your gob shut from now on.

 

[CYOF]

But surely this only proves that YOU have an edge, not the writer in general ?

regards
zupcon

Does that not go without saying?????

Remember - "TRADERS ARE BORN - NOT MADE"

But, what Socrtaes did not tell you all, which I will now tell you all, is that we are ALL RE-BORN!

And, what is more, we can be RE-BORN when ever we so desire!

Are you now starting to GET IT - or is the INSPIRATION still so riveted that it will just not come away?

The choice is YOURS - ALWAYS HAS BEEN - AND ALWAYS WILL BE :idea:

 

[Profitaker]

Yes, and we're only talking about a 5% decline (with premium) between now and June - you don't need black swans for that, just a poor Q1 reporting season...

I totally agree. But try explaining that to someone that thinks if he makes a profit from selling some puts proves a writer edge and you can surely see it's a waste of time trying to explain anything.

Front month ATM premium is running at 1.4% of the FTSE100, not much margin for error there.

 

[SOCRATES]

Next one...a quickie opportunity arose in a brief window.....

Written 3 minutes ago or thereabouts.

2 Apr FTSE 100 puts @ 76

This is trade D

( 76 X 2 X 10 = £1520 = )

....and now lunch...

 

[andycan]

Yes, and we're only talking about a 5% decline (with premium) between now and June - you don't need black swans for that, just a poor Q1 reporting season...

JoC
Soc said it news follows the markets not the other way round
remember 9/11 the shock horror the tragety,carefully look at the chart the writing was on the wall it was going to drop
a move can be calculated accurately what is difficult is the magnitude within a specific time frame
i hope that helps
regards

 

[Jack o'Clubs]

Profittaker or Socrates:

Not an expert in options, so just feeling my way. What's to stop Socrates setting a futures sell-stop at 6025 to cover him if things start to head south. So no hedge at the outset, but take one out later in the day if the trade starts to go sour - would seem to be the best of both worlds?

 

[CYOF]

I totally agree. But try explaining that to someone that thinks if he makes a profit from selling some puts proves a writer edge and you can surely see it's a waste of time trying to explain anything.

Front month ATM premium is running at 1.4% of the FTSE100, not much margin for error there.

As you insist to disregard your elders, and will persist to try and disrupt this thread, as you have accused me of doing to your thread, but, which anyone with one eye can see the difference between our posts, I now have some advice for you.

Answer my post#411 over on your thread, and i will continue to reply.

Or, go and start another thread for BUYING OPTIONS, and run this in parallel with Socrates thread.

We shall then have some FACTUAL information as to who has the advantage - W or B.

But, as we all now know you are like ION, nothing but INSPIRED, you can also do the honourable thing and admit so.

The choice is YOURS - honour or disgrace - what will it be?

You can not say they WE are out to get you, for, WE do not believe in getting anyone.

But, we do not like it when some people try and TELL other people what to do, and to make it even worse, they tell them based on INSPIRATION, not on ART.

You see Wizard, the TRUTH is always THE TRUTH, and som,e day you will realise this, and for your own sake, the sooner the better.

You can change right now if you so desire, for we are only but helping you, but due to your ignorance, you think we are out to get you - this is not correct, in fact, it is not THE TRUTH.

 

[CYOF]

Next one...a quickie opportunity arose in a brief window.....

Written 3 minutes ago or thereabouts.

2 Apr FTSE 100 puts @ 76

This is trade D

( 76 X 2 X 10 = £1520 = )

....and now lunch...

Just in case you did not notice - this is the Apr 5925 strike - as I am sure that socrates was slightly hungry after that little bout

 

[zupcon]

Blah Blah Blah Blah Blah.... snipped.

You really just dont get it do you ?

 

[Profitaker]

Profittaker or Socrates:

Not an expert in options, so just feeling my way. What's to stop Socrates setting a futures sell-stop at 6025 to cover him if things start to head south. So no hedge at the outset, but take one out later in the day if the trade starts to go sour - would seem to be the best of both worlds?

No reason why you couldn't do that, but it still amounts to a short (synthetic) straddle.

How about this for an example - the underlying becomes volatile and bombs 5% and touches the strikes. So you short the equivalent number of futures contracts and.....the underlying rallies 5%. It happens, often, because volatility is a 2-way street, meaning if it's volatile on the way down, it'll be volatile on the way up.

 

[CYOF]

Profittaker or Socrates:

Not an expert in options, so just feeling my way. What's to stop Socrates setting a futures sell-stop at 6025 to cover him if things start to head south. So no hedge at the outset, but take one out later in the day if the trade starts to go sour - would seem to be the best of both worlds?

No hedging as explained from the start - but you are right, and I had to remind Socrtaes

Socrates will, no doubt, add any further comments if required.

 

[CYOF]

You really just dont get it do you ?

Ok my good man:

I am now writing 3 lots of Feb 6125 PUTS for 50+....... OR MORE

Kep watching the screen to GET IT.

 

[CYOF]

Ok my good man:

I am now writing 3 lots of Feb 6125 PUTS for 50+....... OR MORE

Kep watching the screen to GET IT.

Filled @ 54 x 3 x 10 = £1,620

 

[SOCRATES]

I totally agree. But try explaining that to someone that thinks if he makes a profit from selling some puts proves a writer edge and you can surely see it's a waste of time trying to explain anything.

Front month ATM premium is running at 1.4% of the FTSE100, not much margin for error there.

That is right ...no one who is able to think for himself or herself is interested in your "explanations".

No one is intterested in your ideas because your ideas are to attempt to persistently misdirect and derail.

Just answer question 411...explain publicly how you can roll a bought option that is close to expiry and if not worthless, then close to worthless without taking a LOSS...a lot of bluster and nonsense you talk.

This thread is my thread and in this thread I am showing how the writer has the edge over the buyer and not for giving arcane explanations as you would like, and firing with live rounds and not empty words like yours.

So behave properly or clear off !....pest you are !

I am enjoying this immensely:cheesy: I am sure a lot of you are too.

Earlier in the morning I had a report of some fan club member ghosting and doing at least two sequential trades in such close proximity to these announcements it cannot be anything but following....greetngs to you..:cheesy: ...you may PM me if you wish.

 

[Splitlink]

Yes, and we're only talking about a 5% decline (with premium) between now and June - you don't need black swans for that, just a poor Q1 reporting season...

This is the main reason with which I found fault in the "Wot?" series. There is no way that anyone can make forecasts because of the uncertainty of world events. Socrates would have lost a packet, trading as he is doing, in 1987 or in the Twin Towers massacre. But all traders take these risks on board. Socrates is writing puts today and he will stand or fall by his result. What he is not doing is producing prices over a 3 month period, six months ago.

That would, definitely, be open to suspicion.

While we are at it. Is anyone monitoring these trades? I don't have the facilities to do it.

Split