Re:“Becoming Warren Buffett,” the Man, Not the Investor
by ryankennedyio on Wednesday February 01, 2017 @04:45PM
(#13545593)
The downvotes say it all, but don't ever write naked options. The strategy has positive expectancy, except every few years you lose >100% of capital, since the risk is almost unbounded.
Re:“Becoming Warren Buffett,” the Man, Not the Investor
by sokoloff on Thursday February 02, 2017 @03:36AM
(#13549027)
I write naked puts almost every week. It's about the only way I buy highly liquid tech stocks nowadays. The risk is absolutely bounded, of course (and similar to buying a stock outright).
Naked options are not the problem; naked calls are, of course, far more risky and most investors are barred from writing naked calls on individual issues.
Re:“Becoming Warren Buffett,” the Man, Not the Investor
by brilliantcode on Thursday February 02, 2017 @11:41AM
(#13551884)
I never write options. cash secured put/call options are buying not selling options.
This critical edge that has been hiding in plain sight but validated by actual large funds using the same methods.
Someday, newyorker.com and HN will be reading how a "Korean Canadian stock whiz turns his $50,000 CAD tax free savings account into $50,000,000 CAD"
edit: due to downvotes I will not be revealing this prized strategy.