fmg and fe, page-1213

yes your are right, black swans are the biggest risk selling puts on big capital outlay.

ah well ill just keep riding the wave of selling puts on big capital and pray I don't get shafted on some black swan event. I think we should be fairly safe with fmg in the near future. in saying that we are no worse off than the longs that have large amounts of capital invested in say fmg, worst case we get exercised and forced to buy shares in a fairly rock solid company, I only sell puts on companies im happy to own, like asx top 20-50

one thing that intrigues me every month is that I take money from the markets in the form of premium and it gets me wondering, who am I taking it from, is it coming from the actual nervous nelly that wants to just protect their shares, and if so then sheet they are destroying a lot of their speculative capital by paying me insurance every month, even though their insurance would be tax deductable on their holding.

or is it the speculative options contract traders that are losing bigtime here, are they the ones that are being sold the dreams of huge profits from huge leverage with minimal capital outlay at all the seminars.

I must say I see a lot of spruiking from people trying to sell 2-3k seminars about options buying and how to make millions from it, however I don't see many seminars spruiking seminars about selling premium or renting shares. I guess at the end of the day its easier to sell the 2-3k seminar to someone and saying you only need 20k and use leverage to make 10k per month rather than say you need 1 million capital to make 20-30k per month.

anyway lets hope fmg holds around 4.60-4.80 until may options expiry, then I will live to tackle June options. best of luck with your positions.