Keeping track of deltas

[bulldozer]

A quick update:

Nov 5075 PUTS now at 1 1/2 not even 2 pts :cheesy: Positions now closed and i gave the buyers 2 pts back! [this morn] :cheesy: I keep the rest of the premiums recieved

Dec 5025 PUTS now at 6 pts :cheesy: Still open. This one also i'll give back 2 pts and keep the rest. :cheesy: SOON!!

Goog March 350 PUTS now at $1200 Sorry Frugi your position is now down by $600 are you still holding and hoping?

Maltese Bull

 

[Profitaker]

A quick update:

Nov 5075 PUTS now at 1 1/2 not even 2 pts :cheesy: Positions now closed and i gave the buyers 2 pts back! [this morn] :cheesy: I keep the rest of the premiums recieved

A quick re-cap

5075 DOTM puts sold for 10, (£ 100 per contract), taking on a liability of £ 50,750 for each contract sold naked. Whilst these Puts were open IV increased by no less than 50% and the value of these short contracts more than tripled in price. SPAN margin at one point touched £ 1530 per contract, more than 15 x the premium received.

The delta is a good approximation of the option expiring ITM. When I first looked at these options, they had a delta of 0.05, or 5%. That means that 95% of the time (19 times out of 20) a writer can expect to keep all the premium and 5% of the time (1 time in 20) the writers can expect the option to go ITM so far that it wipes out all the previous premiums received, and you break-even. This is the basis of options pricing – probability. It doesn’t matter whether you buy or sell a 5% delta option, the expected outcome is exactly the same, over the long run.

Now go and pop the champagne cork Bully, and enjoy LOL

 

[bulldozer]

Bull,

You made a bet and won. Plenty of mugs do that every single day without ever understanding the odds.

Well done.

Mr Monkeybrains Mr Copout, MrLoooser,

So you are saying I'm a "MUG"? :cheesy: and a FOOL? :cheesy:

Well I'm happy to stay a "MUG/FOOL" and win money from trades and WIN bets from MONKEYS like yourself!! :cheesy:

OK! lets get it on! YOUR MONKEY BRAINS AGAINST A MUG/FOOL! :cheesy:

INFACT THIS MUG/FOOL HAS NOW WITHDRAWN THE 7 DAYS OFFER TO YOU AND NOW REDUCED TO JUST 2 DAYS!! AND IF YOU DONT WANT TO GIVE ME THE RIGHT/CHANCE TO PROVE YOU WRONG, I WILL PROVE YOU WRONG EVEN IF YOU DONT TAKE UP THE CHALENGE!! :cheesy: IS THAT CLEAR MONKEY?

YOUR STATEMENT ABOVE IS WRONG! IN MORE WAYS THAT ONE! :cheesy: Below is a list of reasons why:

1. NOT all brokers allows writers/mugs to write NAKED PUT or CALL options.

2. Not all NAKED writers can handle the margin.

3. Not all writers know how to convert or shift position to another player if things go badly wrong.

4. Not all option players know how to reduce margin or raise extra cash for margin .

5. Not all option players have the right brokers suited for NAKED writing.

6. Not all players have big enough balls to do what i do or have the RIGHT knowledge on options and the DELTAS.

7. Not every player TRACKS the DELTAS my style!

8. Have you amended the ERRORS and misleading statements you made on post 333 and the other ones too?

9. Do you fink its right to accuse someone wrongly and then chiken out when challenged? :cheesy: So plz accept my offer and give an opportunity for the charity to benefit from our dispute! be a man! and say yes! to my offer. :cheesy:

Bull

 

[bulldozer]

Badtrader,

Take a look at this below:
http://www.futuresknowledge.com/Guides/GPFOoptions.htm

http://option-wizard.com/t18.shtml

BACK TO BASICS: Taking Advantage of Time Decay


By Frederic Ruffy, Optionetics.com
9/30/2003 2:30 PM EST


Have you ever heard the expression that options are “wasting assets”? Since options suffer from what is known as time decay, with each passing day, the options contract will lose value. Therefore, if a strategist buys a put or call and holds it in their account, even if the underlying stock or index makes no price movement at all, the portfolio will lose value. As a result, options strategists must carefully examine how time is effecting their options positions.

Mr Profitlooser, Mr Copout,

So you still disagree with all these facts from post 225? :cheesy:

What about these facts below from this guy John summa?


Conclusion:
Data presented in this study comes from a three-year report conducted by the CME of all options on futures traded on the exchange. While not the entire story, the data suggests overall that option sellers have an advantage in the form of a bias towards options expiring out of the money (worthless). We show that if the option seller is trading with the trend of the underlying, this advantage increases substantially. Yet if the seller is wrong about the trend, this does not dramatically change the probability of success. On the whole, the buyer, therefore, appears to face a decided disadvantage relative to the seller.
Having said that, however, we should emphasize that selling strategies can involve substantial risk (buyers, by definition, face limited losses), so it is important to practice strict money management and to trade only with risk capital when deploying selling strategies.



By John Summa, CTA, OptionsNerd.com

 

[bulldozer]

Are you for real ???

I thought I woludn't have to. Didn't you say you were going ?

Let me summarise how GOOG played out in the options trading world that you aspire to...

Put writers made a profit
Put buyers made a loss
Call writers made a loss
Call buyers made a profit

Who had the edge and why ?

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

Mr ArrogantLooser, Mr Copout, Mr BigMouse,

RE: posts 324 and 333.

You have been reminded that there is an error with point 3 on your above statements and you still dont feel you should correct it! Even tho i chalenged you to prove that 3rd statement is wrong and i also also offered you GOOD odds and you chickened out! :cheesy:

I told you it was possible for me to do an OPTION strategy whereby the written PUT AND CALL will win! :cheesy: and you have turned down my challenge and offer!
You have also stubornly repeated the same error on post 333. This statement is WRONG and MISLEADING and CONFUSING to the novices and those that are still in the learning stages of options. What you have said increases the problem for these people! Because some may believe what you may be saying is correct when i know and YOU KNOW and others know its NOT CORRECT!! hence your refusal to take up my good chalenge offer. :cheesy:

RE: Statement by Mr John Summa, [post 371]
Do you AGREE or DISAGREE with his comments? a simple yes or no will do! :cheesy:

Re: http://www.trade2win.com/boards/showthread.php?t=17561 This thread was purposlly openned for you and your sidekicks to demonstrade to the members/viewers your wealth of wisdom and knowledge on trading Options. So far to date you have dissapointed ALL!! :cheesy: WHY??
Or is it that you have NOT quite finished with your present ambitions/style/opinions of posting drivel? :cheesy: When will we all see some REAL MEAT and WINNING TRADES on your posts with LESS ERRORS??

Bull

 

[SOCRATES]

Bull,

You made a bet and won. Plenty of mugs do that every single day without ever understanding the odds.

Well done.

I have just seen this. You made an error and despite Bulldozer asking you to remove it you persist in leaving it there. I am talking about GOOG. This can cause a lot of harm to a lot of people. You ought to act honourably and remove it. Or is that too much to expect ?

 

[bulldozer]

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 Fruitcake, Mr Mouse, Mr Looser, Mr profitlooser,

Re: 343 above.

Your statement is almost correct! :cheesy: but almost CORRECT !! IS NOT 100% CORRECT!! :cheesy: IS IT??

Like i said to you many times!! Your misleading the people with your comments. I offered you a GOOD wager wiv GOOD odds! To prove your statement is NOT totally correct on the CALL position and you refused the chalenge.
I can write DOTM DELTA ZERO strategy on BOTH calls and puts and if underlying goes up or down or side ways, BOTH WILL SHOW A PROFIT!

So your posts 324, 333, 343, Need to be amended as they are NOT 100% correct! AND VERY MISLEADING TO THE LEARNERS/VISITORS. AND YOUR ARE ALSO UNDER ESTIMATING THE POWER OF THE "THETA" :cheesy:

BULL

 

[bulldozer]

shooting yourself in the foot again, i see..

FC,

I planned to leave this forum but i allow myself to be draged in cause of the comments of the ******** found on this forum.
I do hope they ban me for ever and never let me back in!!

So MR Goldfish Frugi [moderator] plz ban me!! and plz DONT REMOVE this post!

Bye Bye all and Happy XMAS!!

The Maltese Bull

 

[mtbelly]

Hi guy's

Which TWO of these 5 Greeks are the most important for a naked writer ?

Theta, vega, gamma, delta, rho.

 

[A Dashing Blade]

Why don't you tell us Bulldozer, sorry, mtbelly?

:idea: :cheesy: :-0 :|

 

[mtbelly]

Why don't you tell us Bulldozer, sorry, mtbelly?

:idea: :cheesy: :-0 :|

Hello my friend,

The TRUTH has NO lies! and LIES has NO TRUTH!! :cheesy:

Bulldozer did predict this place will be like a morgue!! :cheesy: LOL

Do you and your friends think you can bring some life back to this derivative forum??

Hungry belly

 

[A Dashing Blade]

Hi guy's

Which TWO of these 5 Greeks are the most important for a naked writer ?

Theta, vega, gamma, delta, rho.

So what do YOU think mtbelly?

 

[Profitaker]

Gamma & Theta, the two sides of the same coin.

Vega becomes more significant with far-dated writes. Delta is only of any real use when dynamic hedging, and Rho becomes irrelevant when trading stock / index options.

psssst. Is that the answer you're looking for Bulldozer ?

 

[mtbelly]

So what do YOU think mtbelly?

hello again my good friend DB,

I dont do the thinking! Bulldozer does all the thinking and comes up with the trades! I just follow his trades! its a lot easier for me this way! and easier on my brain too! :cheesy:

hungry belly

 

[mtbelly]

Gamma & Theta, the two sides of the same coin.

Vega becomes more significant with far-dated writes. Delta is only of any real use when dynamic hedging, and Rho becomes irrelevant when trading stock / index options.

psssst. Is that the answer you're looking for Bulldozer ?

Hello again Profitaker,

Have you taken any profits lately? [just curious as your name suggests you do]

I like your reply! but , dont like it 100% .

My question was based for a naked writer without hedging! I liked your DELTA reply on dynamic hedging but , hedging is not ALWAYS relevent to a naked writer!

I think i have a good guess what your reply will be to this post :cheesy:

hungry belly

 

[A Dashing Blade]

hello again my good friend DB,

I dont do the thinking! Bulldozer does all the thinking and comes up with the trades! I just follow his trades! its a lot easier for me this way! and easier on my brain too! :cheesy:

hungry belly

Wriggle wriggle wriggle Bull!
Why ask the question originally then?

:| :-0 :arrowd: :arrowl: :arrowu: :!: :idea:

 

[wasp]

mtbelly/Bulldozer/IrishpaddyPC,

Just had a look at tacticaltrader or whater it was. Seems you have some real issues. Why don't you just earn a crust and shut up arguing? If you are so skilled, surely your time would be better spent enjoying your fortunes?

 

[Profitaker]

If you are so skilled, surely your time would be better spent enjoying your fortunes?

It's a bit more complicated than that. We all know he's anything but "skilled", indeed "backward" would be more appropriate. However, he is trying to take £ 400 from gullible individuals for the privilege of seeing his trades on his own website. Clearly he can't earn a crust on his own account. He should be stoped.

Please don't laugh.

 

[wasp]

However, he is trying to take £ 400 from gullible individuals for the privilege of seeing his trades on his own website.

Didn't realsie that. It explains a lot. thanks.

 

[mtbelly]

Hello young boys,

Do you little boys know when we will be seeing some GOOD OPTIONS TRADES on here?? like the one on show at TT by Mr Bulldozer?? [for FREE]

If he charged less than $400 to be a member on the Platinum Lounge, the place would be filled by little boys who TALK BIG and show NO real talent of trading derivatives!!!

Did that thought enter your brains? :cheesy: perhaps not!!?

Have fun and keep waiting!! See yah soon!

Profitaker, I dont think you have what it takes to stop the guy! from making lots of $$$ from gullible people/children!! :cheesy: your too bussy trading options!



Hungry belly