all available warrants and eto, page-17

  1. 7,980 Posts.
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    re: writing an index call / put Agree Ken,
    I havn't looked at it for a while,but I used to write options on SPI was any easy $

    I started off ( as per "mentor " broker) writing strangles with some "downside insurance" but was always frightened of the downside, so finished up only writing naked calls.
    An interesting learning experience .
    Decided to put my toe in the water with $10000 initial capital.
    Took out too many positions to start with.
    Soon was being margined !!! ... had to put in a further $5000 ...& still not looking good .
    Took a deep breath & bought back all open contracts turning my initial $15,000 into $8500 in a matter of weeks.!!!!
    Started again without putting any more capital in ( & doing it MY way (not the brokers) & over the next 18 months managed to turn it into $78,000 just writing calls... 3 months out, & approx 10% above actual SPI price.Gradually increased my exposure as the bank built up. Looked on the chart to get resistance points to find values to use to write the calls. Back then the new S&P200 or SPI index on which the contract is based didn't have any history to refer to I looked as the old XAO which mirrors the SPI & worked it from there.
    It was as you said ,money for jam.But then when the premiums dropped off when the market topped out, I stopped doing it took my money & ran.
    The biggest problem/risk I saw was the lack of liquidity which could leave you very vulnerable.

    Youv'e re-awakend my interest
    Might get back into it

    BlackGold
    My best advice to you is to start out small with ONE contact only & get a feel for how the thing works.How TIME works in your favour & how the margins work.If you do it right, gradually your profits will build & you can add some of this profit to your initial capital & take bigger positions........
    Sounds easy.
    It is.....but few get it right so be careful & good luck.

    Caveat emptor

    Bendigo



 
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