Options trading

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markowitzman

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With the vix so high on the us markets at present wondering are there many on AAM trading options? With wide gyrations of market there seems to be more profit opportunities.
 
Many people only invest in optionable stocks for this reason. They buy(or short) the stock and then hedge against it using options.
 
short a straddle on the S&P perhaps?.. provided the market does not trend strongly in either direction you will be quids in..
 
bigred said:
short a straddle on the S&P perhaps?.. provided the market does not trend strongly in either direction you will be quids in..
Click to expand...

And you could be unlimited quids out if the market moves significantly either up or down ie the market gaps in response to a world event. Writing naked options is an extremely risky practice with potentially unlimited losses and one's profits are limited to the premiums received for the initial selling of the call/put. Your strategy should come with a wealth warning imo. Personally only ever write covered calls.
 
use options as a hedge against stock holdings and use one of the american newsletters for the high risk stuff of buying naked calls and puts and selling them on the momentum. The latter has been hugely profitable due to the large increase of volume after the recommendation but as demoivre says this is not for widows and orphans or money one cannot afford to lose.
 
agree with everthing you have said demoivre, I would not be huge fan of the trade either, rather i was trying to present a strategy that would exploit the view that implied vols were stretched i.e. a bet that the S&P be less volatile that the implied vol in the options is a good way to take advantage of high option premia..

markowitzman.. not sure I follow your last post..
 
I'm interested in purchasing some puts on US financial/mortgage company's.

Can anyone here fill me in on where I can actually buy options and get prices?

Would premiums set by Irish companies be prohibitive meaning I'd be better off setting up an account in the US?

Appreciate any advice I can get on this.

Ixus
 
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