I enjoy these videos. Makes me feel at home when people talk shop. Maybe not for Tom, but trading is a lonely hobby. Not even your parents understand what you're saying to them. Looks of confusion everywhere you go. People can't wait for you to change the topic.
Please tell me something... if I sell a Calls out of the money for $200 and 5 days later the market reaches my $200 point and my Sell Calls is $1500...(loss)...My question is f I get out of the market at $1500 loss will I get the $200 deposited to my trading account and lose $1300 or just loss $1300
You collect the $200 up front, so it depends on how you are viewing the loss. Most trading platforms will already account for the credit you're received, so if you see a $1300 loss on your positions tab, you are buying the option back for $1500. If you see a $1500 loss on your positions tab, you are buying the option back for $1700.
Maybe make the risk defined by doing spreads and use a lot of small positions instead of one large position. Even if some get blown out, the high probabilities and spread out risk greatly works in your favor and offsets the risk reward ratio in premium selling. Like a casino or an insurance company.
if you're gonna sell strangles you might as well go 10 strikes out and turn it into a 8-10 strike iron Condor barely effecting your credit and lowering your risk and BP effect. just an idea
I enjoy these videos. Makes me feel at home when people talk shop.
Maybe not for Tom, but trading is a lonely hobby.
Not even your parents understand what you're saying to them.
Looks of confusion everywhere you go.
People can't wait for you to change the topic.
Please tell me something... if I sell a Calls out of the money for $200 and 5 days later the market reaches my $200 point and my Sell Calls is $1500...(loss)...My question is f I get out of the market at $1500 loss will I get the $200 deposited to my trading account and lose $1300 or just loss $1300
You collect the $200 up front, so it depends on how you are viewing the loss. Most trading platforms will already account for the credit you're received, so if you see a $1300 loss on your positions tab, you are buying the option back for $1500. If you see a $1500 loss on your positions tab, you are buying the option back for $1700.
higher probability but higher risk
Maybe make the risk defined by doing spreads and use a lot of small positions instead of one large position. Even if some get blown out, the high probabilities and spread out risk greatly works in your favor and offsets the risk reward ratio in premium selling. Like a casino or an insurance company.
tony is great he has so much wisdom
LOL great comment
if you're gonna sell strangles you might as well go 10 strikes out and turn it into a 8-10 strike iron Condor barely effecting your credit and lowering your risk and BP effect. just an idea