SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Calls and Puts for Income
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bridge Player who wrote (5781)8/30/2013 12:11:12 AM
From: Robohogs  Read Replies (1) of 5891
 
I do mainly use strangles probably half to 2/3. I can also honestly admit to trying to leg in but usually bungle the calls and start late. In this mkt, may help protect mistakes as I don't see runaway to upside whereas a cascade down might happen.

You have to be willing to take the loss though as while margin is good at beginning, stocks gapping higher GULP margin - higher price to take percentage of, less cushion if any, etc. Takeovers kill. I had 2 nearly 6 figure red days in February as a result - on a takeover, on a heavy short where I shoulda been out with ginormous gains - thesis fell apart, and hedges on a DOJ antitrust situation. I have spent almost the whole year digging out.

You also have to deal emotionally with losing money while being right on favorite stocks - have had happen 3-4x lately. BUT you remember those losses more than the steadier gains as a result. Overall it helps gains. But again, don't count the money. I would assume that you might make 1/3 to 1/2 the pool of premiums in a GOOD flattish mkt. some guys here seem to print money every tkt; many of mine become fights. GDP is a good example - liked the level, the vols, etc. Sold a ton of puts. Sold some calls too. And as it got going rolled out and up over and over. Now stuck with a big mess. And if you try to delta hedge you end up buying high and selling low. Just some food for thought.

Jon
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News