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Options Seller.com blows up and goes dark after the market moves against it. And, they are telling some account holders they may owe money as their accounts now reflect debit balances.
Cordier's thing was always based on percentages - you just didn't need the underlying stock or commodity to move against you. Up, sideways, anything but into the money and you would make money. I read one of his books years ago and I don't recall him ever discussing risk very much ... selling naked puts on something expensive is never a good idea unless you're a pro, know what you're doing, and are well-capitalized. Want to sell puts to get income and maybe own the stock if it moves against you? Have the $$$ handy in case it does. Want to sell puts as a *trade*? Do a put spread so at least your risks are managed and you're being responsible.
It's like years ago on the very first episode of CNBC's Options Action, some guest trader said he'd recommend RETAIL INVESTORS sell puts on Google trading around $600 -- he didn't say boo about what happens if it goes against you. He didn't return to the show. LOL I wonder how many retail newbies followed his reco and got hosed on that trade.
Seriously, today’s markets (to me anyway) are beginning to resemble something like the infamous Bermuda Triangle or perhaps a chapter out of Alice in Wonderland. Up is down. Big is small. Right is left. In a really bizarre twist, Hussman’s HSGFX is up this year. How odd is that?
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It's like years ago on the very first episode of CNBC's Options Action, some guest trader said he'd recommend RETAIL INVESTORS sell puts on Google trading around $600 -- he didn't say boo about what happens if it goes against you. He didn't return to the show. LOL I wonder how many retail newbies followed his reco and got hosed on that trade.
Seriously, today’s markets (to me anyway) are beginning to resemble something like the infamous Bermuda Triangle or perhaps a chapter out of Alice in Wonderland. Up is down. Big is small. Right is left. In a really bizarre twist, Hussman’s HSGFX is up this year. How odd is that?