Posted:
#51
Vermeer,
I have never allowed myself the ability to sell uncovered nor got the approval to do so. Of course that limits my potential on choices but it also puts a curb on my tendencies if that makes sense.
I really should get full options access, but being a broker during the hay day and see people lose hundreds of thousands selling uncovered, well I just never wanted the temptation.
A bull put spread makes a ton of sense and it looks like today someone was selling the 60s uncovered, 1596 contracts trading today and nothing else in the full spectrum for Sept has traded near that number.
Just out of curiousity, why go so far down and do a spread versus just selling the puts naked? If you are looking at the 45s and 50s, the price is only between 80 cents and a buck..is it worth locking up the capital for that small of return on the credit spread?
I have never allowed myself the ability to sell uncovered nor got the approval to do so. Of course that limits my potential on choices but it also puts a curb on my tendencies if that makes sense.
I really should get full options access, but being a broker during the hay day and see people lose hundreds of thousands selling uncovered, well I just never wanted the temptation.
A bull put spread makes a ton of sense and it looks like today someone was selling the 60s uncovered, 1596 contracts trading today and nothing else in the full spectrum for Sept has traded near that number.
Just out of curiousity, why go so far down and do a spread versus just selling the puts naked? If you are looking at the 45s and 50s, the price is only between 80 cents and a buck..is it worth locking up the capital for that small of return on the credit spread?
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