Any options traders here?

**aspkin** · #1 05-19-2020

I mostly buy and hold equities.

Lately I'm getting into options trading which can be very profitable I'm learning.

I'm usually pretty good at spotting patterns and predicting outcomes so this is a natural fit I'm finding.

Any traders here ?

glacier922 · #2 05-19-2020

For me, options not so good deal. High premium at initial price, and it expires worthless? Make sure to never ever write naked calls, I've seen people lose 50,000 dollars in a blink of an eye, literally within 10 minutes. It happened when fed chairman Alan Greenspan back in the day, unexpectedly announced a rate cut in the 1990s, during option expiration. There was a fellow that wrote naked calls everytime at the end of expiration, sounds simple right? Write the contract, collect the premium wait for it to expire and pocket the money, then boom! Rate cut! Stocks go flying, u need to cover your shorts at high prices, you're f*cked, 50,000 dollars poof, in 10 minutes.

**aspkin** · #3 05-19-2020

I would stick to buying calls or puts because there is a ceiling to your loss (the premium) whereas selling calls or puts there is no ceiling? At least thats what I figured? I'm reading up on options at the moment.

glacier922 · #4 05-19-2020

Yea selling naked calls, limit profits, unlimited loss, selling naked puts, limit profit, limit losses, though losses can be huge. 90 dollar stock, writing put, stock can only go to 0at absolute worse scenario, so about 90 points or so maximum loss.

Selling calls, stock can theoretically go to infinity, so losses can be infinity.

**aspkin** · #5 05-20-2020

I see, yeah I'll stick to buying calls/puts for now and when I get more educated I'll gamble with selling calls/puts.

agent006140 · #6 01-25-2021

write cover calls and cover puts,say you have 100 shares of FB ,your cost is $120.
write cover calls strike 325 expiration 1/29/21.
FB closed at $278 today,earnings Jan 27,if it is good ,it will go up,if it goes higher than $325 on Friday 29th,it will be called .
if not,you keep the stock and the premium
You have to know how your stock behaves,would FB goes over $325 on Friday?

kirkland · #7 02-08-2022

vol trader here, trading options in index, single names and energies for almost 10 years now. mostly short strads/strangs, calendars and directional flies, but it all depends on my views on the underlying. would not advise options if you're trying to forecast direction as theta will kill you

EDIT: did not realize this thread was almost 2 years old