|
PureBytes Links
Trading Reference Links
|
Time is never on your side. Options were created to be traded, not held to
expiration. volatility is the option traders greatest friend. Two rules I
have always, after I got burned by not having a rule, never be short more
options then you are long, and always try to create positions with limited
risk and unlimited profit. Options are directional. Market makers can use
time because of their advantageous margin requirements, and trade overvalued
against undervalued options. The upstairs trader has to know how to negate
the effect of IV overvaluation and time. Just one mans opinion. Been there
done that. Ira
----- Original Message -----
From: "prosper1000" <prosper1000@xxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, March 28, 2003 8:27 AM
Subject: Re: [RT] What's wrong with the stratagie in #21907?/Ray et al
> Thanks Ira, yes I see that, although time could be on your side if
> volatility declined, much higher prices would kill you.
>
> --- In realtraders@xxxxxxxxxxxxxxx, "Ira" <mr.ira@xxxx> wrote:
> > What you have done is create a situation of limited profit and
> unlimited
> > risk. Not to hard to figure. Add the price of the put you sell to
> the
> > strike price and everything above that is loss point for point with
> a rise
> > in the stock or future price.
> > ----- Original Message -----
> > From: "prosper1000" <prosper1000@xxxx>
> > To: <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Thursday, March 27, 2003 6:23 PM
> > Subject: Re: [RT] What's wrong with the stratagie in #21907?/Ray et
> al
> >
> >
> > > Here is is Ray,
> > >
> > > It should have been sell an at the money put and sell the
> underlying.
> > > I want to know if I am clear about what can go wrong if the price
> > > goes up, stays about the same, or goes down. If the price goes
> down
> > > the the loss on the option and the gain on the underlying should
> > > cancel out. If it goes up, you maintain the value of the sold put,
> > > but you lose on the sell of the underlying. I guess that a stop,
> > > would stop the loss on the underlying, but then your put would be
> > > naked agian.
> > >
> > > Thanks again.
> > >
> > > Prosper
> > >
> > >
> > > --- In realtraders@xxxxxxxxxxxxxxx, "Ray Raffurty"
> <r.raffurty@xxxx>
> > > wrote:
> > > > Hi Prosper,
> > > >
> > > > No I didn't get the second post. I've noticed that happens
> > > sometimes with Real Traders and/or Yahoo. What did it say?
> > > >
> > > > Good luck and good trading,
> > > >
> > > > Ray Raffurty
> > > >
> > > > ----- Original Message -----
> > > > From: prosper1000
> > > > To: realtraders@xxxxxxxxxxxxxxx
> > > > Sent: Thursday, March 27, 2003 1:24 PM
> > > > Subject: Re: [RT] What's wrong with the stratagie in
> #21907?/Ray
> > > et al
> > > >
> > > >
> > > > Hi Ray,
> > > >
> > > > Did you read message #21907? I got the origionaly stratagy in
> my
> > > > first post wrong. I redefined it in post #21907. Sorry about
> > > that. I
> > > > would still like to hear what you and others have to say about
> > > it.
> > > > Thanks
> > > >
> > > > Prosper
> > > >
> > > > --- In realtraders@xxxxxxxxxxxxxxx, "Ray Raffurty"
> > > <r.raffurty@xxxx>
> > > > wrote:
> > > > > Hi Prosper,
> > > > >
> > > > > There is nothing wrong with any strategy as long as you
> > > understand
> > > > the possible risks and rewards:
> > > >
> > > >
> > > >
> > > > Yahoo! Groups Sponsor
> > > > ADVERTISEMENT
> > > >
> > > >
> > > >
> > > >
> > > > To unsubscribe from this group, send an email to:
> > > > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> > > >
> > > >
> > > >
> > > > Your use of Yahoo! Groups is subject to the Yahoo! Terms of
> > > Service.
> > >
> > >
> > >
> > > To unsubscribe from this group, send an email to:
> > > realtraders-unsubscribe@xxxxxxxxxxxxxxx
> > >
> > >
> > >
> > > Your use of Yahoo! Groups is subject to
> http://docs.yahoo.com/info/terms/
> > >
> > >
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Make Money Online Auctions! Make $500.00 or We Will Give You Thirty Dollars for Trying!
http://us.click.yahoo.com/yMx78A/fNtFAA/46VHAA/zMEolB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|