Comments on: On Going Naked http://livingoffdividends.com/2006/10/23/on-going-naked/ Join me on my journey to achieve financial independence through dividends, passive income and investments Tue, 16 Mar 2010 21:22:11 -0700 http://wordpress.org/?v=2.8.1 hourly 1 By: Jonathan van Clute http://livingoffdividends.com/2006/10/23/on-going-naked/comment-page-1/#comment-408 Jonathan van Clute Sun, 29 Oct 2006 23:25:00 +0000 http://www.livingoffdividends.com/2006/10/23/on-going-naked/#comment-408 Ahh good... I'm all for higher risk strategies as long as people understand their place in the overall picture. =) Ahh good… I’m all for higher risk strategies as long as people understand their place in the overall picture. =)

]]> By: Empty Spaces Inc. http://livingoffdividends.com/2006/10/23/on-going-naked/comment-page-1/#comment-406 Empty Spaces Inc. Sun, 29 Oct 2006 21:46:00 +0000 http://www.livingoffdividends.com/2006/10/23/on-going-naked/#comment-406 great idea.<br />i'll think i'll do it that way.<br /><br />its not that i don't like buying on margin. i don't paying the interest and leverage cuts both ways.<br /><br />the naked options are a tiny part of my portfolio. great idea.
i’ll think i’ll do it that way.

its not that i don’t like buying on margin. i don’t paying the interest and leverage cuts both ways.

the naked options are a tiny part of my portfolio.

]]> By: Jonathan van Clute http://livingoffdividends.com/2006/10/23/on-going-naked/comment-page-1/#comment-403 Jonathan van Clute Sun, 29 Oct 2006 18:21:00 +0000 http://www.livingoffdividends.com/2006/10/23/on-going-naked/#comment-403 OK wait - you don't like buying on margin but you're willing to sell naked puts & calls, which require margin and have tremendous amounts of risk??<br /><br />If you've got the stomach/other things for it then by all means go for it. A friend of mine did very well selling naked puts for a couple years, until one day he almost got spanked very very badly by a couple of surprise news announcements.<br /><br />Why not sell the short month option, and buy the back month LEAP (assuming there are LEAPs) at a much further out strike as insurance? This create basically a combination vertical/time spread. The Delta of the out of the money long dated option is such that it can actually be very beneficial to your position, but the price will be quite low for insurance if you buy a couple of strikes out. Then collect money for a few months or even a year or two on the front end.<br /><br />Have fun!<br /><br />Jonathan OK wait – you don’t like buying on margin but you’re willing to sell naked puts & calls, which require margin and have tremendous amounts of risk??

If you’ve got the stomach/other things for it then by all means go for it. A friend of mine did very well selling naked puts for a couple years, until one day he almost got spanked very very badly by a couple of surprise news announcements.

Why not sell the short month option, and buy the back month LEAP (assuming there are LEAPs) at a much further out strike as insurance? This create basically a combination vertical/time spread. The Delta of the out of the money long dated option is such that it can actually be very beneficial to your position, but the price will be quite low for insurance if you buy a couple of strikes out. Then collect money for a few months or even a year or two on the front end.

Have fun!

Jonathan

]]> By: Empty Spaces Inc. http://livingoffdividends.com/2006/10/23/on-going-naked/comment-page-1/#comment-395 Empty Spaces Inc. Wed, 25 Oct 2006 19:03:00 +0000 http://www.livingoffdividends.com/2006/10/23/on-going-naked/#comment-395 thanks Jeff!<br /><br />i'd return the favor, but you're profile isn't visible. thanks Jeff!

i’d return the favor, but you’re profile isn’t visible.

]]> By: Jeff http://livingoffdividends.com/2006/10/23/on-going-naked/comment-page-1/#comment-394 Jeff Wed, 25 Oct 2006 18:53:00 +0000 http://www.livingoffdividends.com/2006/10/23/on-going-naked/#comment-394 looks like you put a lot of time into this blog, so I clicked on your ads. looks like you put a lot of time into this blog, so I clicked on your ads.

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