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Naked puts, options, lots to learn


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Naked puts, options, lots to learn

  #1 (permalink)
 
Big Mike's Avatar
 Big Mike 
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I have a lot to learn when it comes to options.

I was just reading this article and don't doubt that these scenarios exist, especially in this crazy market we're in today.

Serious Money: The world's dumbest market - BloggingStocks

Any one trading options care to explain some of this?

Mike

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  #2 (permalink)
 
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 sam028 
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This kind of strategy exists, but this guy in wrong for few things.
When you sell a Put (we say writing a put), and at the same time you own the underlying (stocks here), this is not a Naked Put.
This is a Naked Put.
Theoptionsguide.com is, I think, the best website for understanding options, all the most commonly used strategies are there.
There is a lot of books on options, I like this one, for beginners, and then this one, which is really great (how to manage you positions).

In fact, I really love options, it's "slow", not like a crazy future contract, but it can be a very very powerful tools. I'm only playing with options spread, no naked stuff, I like to know, when I pull the trigger, what is my maximum drawdown.

I think every trader need to know, a least, what is an option, how do we play with it, and what are the basic strategies.

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  #3 (permalink)
 
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 sefstrat 
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I'd recommend DeMark's book on trading options, it has a very good intro as well as more advanced techniques

That said, I've never personally traded options.. I only use options data to assist in trading decisions (also discussed somewhat in DeMarks book)

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  #4 (permalink)
 Delta_Panther 
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Does anyone use this kind of software for his option trading strategies ? :bmt-rocks:

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  #5 (permalink)
 
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 sam028 
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You can have a look to Visual Options Analyser here, quite cheap. I use an Excel sheet, based on this one, with some "home made" modifications.

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  #6 (permalink)
 Delta_Panther 
Switzerland
 
Posts: 112 since Aug 2009

Thanks sam028

I will check it. OpVue 6 is quit expensive and I am looking around for some other ideas. I like to trade option on futures or with futures. I like to trade any kind of strategy. So I need to have an input mechanical or per hand on both products. I have to test that. In the mean time : Thank you and good trading for you and all the members.

Regards

DanPickUp

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  #7 (permalink)
 meyer99 
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sam028 View Post
This kind of strategy exists, but this guy in wrong for few things.
When you sell a Put (we say writing a put), and at the same time you own the underlying (stocks here), this is not a Naked Put.
This is a Naked Put.
Theoptionsguide.com is, I think, the best website for understanding options, all the most commonly used strategies are there.
There is a lot of books on options, I like this one, for beginners, and then this one, which is really great (how to manage you positions).

In fact, I really love options, it's "slow", not like a crazy future contract, but it can be a very very powerful tools. I'm only playing with options spread, no naked stuff, I like to know, when I pull the trigger, what is my maximum drawdown.

I think every trader need to know, a least, what is an option, how do we play with it, and what are the basic strategies.

Sam,
Are you still doing option spreads?
Can you show a little bit of what you do and rationale?
Any forums you recommend?
Thank you.

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  #8 (permalink)
 gio5959 
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when you guys think you have your options strategy figured out you should try doing binary options here - you can fund an account with as low as $100 and trade with as low as $30 per option trade - you just have to be right on your options for one hour (or less, depending when you get in) and you could collect as much as 81% of invested money - the downside is you could lose your investment - but what the heck we know the odds about trading , dont we

Binary Options Trading Broker | Winoptions.com

btw, tell them i sent you so i can get some bonus $ for referring you

gl

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  #9 (permalink)
 
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 sam028 
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meyer99 View Post
Sam,
Are you still doing option spreads?
Can you show a little bit of what you do and rationale?
Any forums you recommend?
Thank you.

@meyer99, I've not use options spreads these last few months. I used to trade US stock options, but my account is in Euro, so I also had to hedge my USD positions, and it was a bit too much for me. Options can be a bit complex, so when you add the currency aspect in it, it can be hard to understand and manage.
But I can show few things, if few people are interested.
I didn't found any good forum for options. The thing to do, imho, is to read a couple of books, then paper trade, then trade real cash. It easier to learn like this.

@gio5959: this is gambling. If I want to gamble, I'll do it with horse racing, it's more fun than binary options

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  #10 (permalink)
 meyer99 
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Sam,
I am interested in seeing whatever you want to show. Others will show up, I am sure.

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