Anyone trading options here?

[Illini]

if one could not take unlimited risk EVER; then there would not be an option market, PERIOD.
when one buys an option, who offers you unlimited upside? someone or some entity must be
fading every long option position. it's the market maker or people like me willing to absorb
large risk for a generous return. the option market makers are some of the most sophisticated
investors on the planet. they run complex and dynamic algorithms to determine fair value
at any particular moment and usually only complete trades that offer positive equity.
meaning that the other side of the trade gets the worst of it. I respect your opinion
illini, but in this case you are biased and not informed.

Oh, I know all about market makers and options. I'm comfortable selling options at any time, but not without protection so that I can define my risk.

 

[niltes]

when you make a bet, someone or some entity is fading you on the other side.
the same is true when one buys or sells options. just as you choose to
mitigate risk by taking protection when selling an option; others in
similar situations may or may not decide to hedge none, some, or all
of their position. different people have different opinions, strategies, risk
tolerances, and bankroll. one blanket investment strategy is not correct
for everyone. what makes you comfortable may seem too risky or too
conservative to others. that's why these markets take action on both
sides and derivatives are offered to allow one to protect or aggressively
invest ones capital.

 

[Illini]

when you make a bet, someone or some entity is fading you on the other side.
the same is true when one buys or sells options. just as you choose to
mitigate risk by taking protection when selling an option; others in
similar situations may or may not decide to hedge none, some, or all
of their position. different people have different opinions, strategies, risk
tolerances, and bankroll. one blanket investment strategy is not correct
for everyone. what makes you comfortable may seem too risky or too
conservative to others. that's why these markets take action on both
sides and derivatives are offered to allow one to protect or aggressively
invest ones capital.

If you're comfortable risking your entire life on one trade, good on you.

 

[niltes]

unlimited risk does not mean ones entire life. positions can be sized
according to risk and/or hedged. or both. to each his own.

 

[PatsFan1283]

niltes how long is the duration on the naked tesla calls that you sell?

1mo, 3mo?....6mo seems way too risky

 

[niltes]

the premiums are so great that a one month call with a strike 10-20 points above
the last trade usually offers a fair return. the more bearish I feel, the lower the strike
price. I don't get stubborn however. if the strike price is threatened, I simultaneously
buy back that call and sell the following month at a higher strike for a small credit.
if I make most of my option premium or a lot quickly, I tend to close the position as Musk is capable
of saying something that can immediately drive the stock price up by 5% or more.
long term calls on tesla are juicy but are riskier and are more difficult to hedge.