Optionsellers.com

[clipsnation183]

Not sure if you folks saw this over the weekend. I feel sorry for this guy - I know how it feels to blow up. This guy lost 500M+ by some accounts. 

 

[Kim]

Why do options writer have better chance of earning

[krisbee]

8 hours ago, clipsnation183 said:

Not sure if you folks saw this over the weekend. I feel sorry for this guy - I know how it feels to blow up. This guy lost 500M+ by some accounts. 

https://www.borntosell.com/covered-call-blog/option-sellers-interview

 

[cuegis]

What has me concerned is that there is great opportunity to be had with the SPAN margin system that is used for futures/futures options.

Yes, it does allow for one to have much greater leverage, and take on more risk than in stocks/stock options.

 

But, these guy's behavior, I believe, is not the norm, it is the exception, and it worked for them as long as the statistics allowed it to go on.

Probably even longer.

They obviously know enough about how all of this works, and that after selling naked deep OTM strangles, with no offsetting protection, and have not gotten blown up, they should have considered themselves lucky, and counted their blessings, and maybe even pulled back a bit.

 

But, just when the statistics were not on their side, they went out and took the highest level of unprotected risk that the , very liberal, SPAN margin would allow, and the inevitable happened.

 

I am worried that this incident might ruin it for all of us, and all of the responsible , "defined risk" traders, who really benefit from the SPAN margins, and use it wisely.

I'm concerned that this incident might cause the regulators to start making changes, and cracking down on SPAN rules.