Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: MonsieurGonzo who wrote (31550)	12/18/1997 8:33:00 PM
From: Nemer	Read Replies (1) \| Respond to of 58727

Steve: -----> short PUTs and CALLs. I neglected to state in my previous post that I have become convinced that Tom/Judy/et al had already revealed a partial remedy to the situation. If indeed, it was some other poster besides/and/or/ instead of these two, I apologise, for my memory indeed is failing, along with my eyesight as the years progress....ggggg But, we all learn together. The seller of the index puts and calls are making more profit on most all trades than the purchaser. Indeed, at times, the only benefit of a monetary nature is going to the seller. Here on this thread, we (most posters) tend to refer to the combo of time and price decay as premium. It really is, in my calculations, actually ---- mark up. Mark Up ----the profit which is made on every sale in which everyone participates in every day on every purchase we make from coffe and doughnuts to gasoline to Christmas presents........ Wholesale cost is usually smaller than retail price. I don't want to get into a semantic debate on "every" and "retail" and "profit"---- Most of the readers of this post comprehend what I mean. In the current OEX market, the seller is the one taking the most risk. Basically, the buyer only stands to lose his amount "wagered" on the transaction. It takes more capital, more ability, more stability, more wevos to be a seller------the rewards are greater now than in the past due to the abundance of what I termed "fish" in the trading market. I can remember the day when a "normal" street broker at the retail level had no clients dealing in options, futures, derevatives, etc. As I live in a very small town which has fewer than a dozen brokers I have observed that every one of them now has clients (10-20%) operating in the option market. These folks are enamored with the leverage and profit potential. No more idea than a goose that they are operating in treacherous waters filled with sharks of voracious feeding abilities feasting on their hard earned monies. I made several phone calls to a number of my broker buds and there are only three or four sellers of options in this little town. The number of buyers is in the multi dozens. I'm not preaching to you or to anyone else on this thread, but if one doesn't have the financial wherewithall to sell options, as well as to buy them, perhaps, one should sit out this current dance........... Nuff said, and I apologise for the lecture, especially to you......gggg Regards---Nemer