Mark Wolfinger

By Mark D Wolfinger Let’s begin with a basic fact: There are many methods for adjusting a position so that risk is reduced. Some are inexpensive, others cost more than most traders are willing to spend. Some are effective most of the time, but the protection offered is minimal. Others are so effective (alas, that happens rarely) that the gains an be spectacular. [Think of owning an extra put or two before the market opens down 20% one fine day] Click here to view the article

By Mark D Wolfinger When markets are volatile, and especially when that volatility is on the downside, it costs more cash to buy your entry into the positive-gamma game because the options are more expensive. This should make sense because “everyone” wants to buy options when the possibility of a big market move has increased. Click here to view the article

Selling naked put options is often (mistakenly) considered to be a 'very risky‘ proposition. Professional stockbrokers who spread that message are doing their customers a major disservice, because they are steering those customers away from a prudent, profitable investment method. The only dangerous part of options trading is the risk-insensitive trader who buys and sells options with little or no understanding of just what can go wrong. The options, by themselves, are not dangerous tools. Click here to view the article

cw, Thanks. If new traders could learn to temper their enthusiam, it would make a big difference. If successful, exprienced traders understand that a winning streak does not guarantee futuire success, then positon sizing would never be a problem.

Thanks for the greetings. Much appreciated.

720/730/795/805 credit of .55, margin $5.00 -- after commision return of 10.5% if it expires worthless (which it should). Margin is $10.00 for the 10-point spread RUT is at 762, so it would take a 32 point drop or 33 point rise to actually lose. Though do note that if you get a 15-20 point rise (or drop) in the next two days the trade will reflect a book loss. Wow. A 'book loss' is a loss. It may not be a realized loss (yet), and that loss may disappear. However, traders who ignore future risk and believe that 'book losses' are not real will suffer the consequences later. Please be aware of risk at all times. Please be aware that iron condors do not win every time. The path to long-term profitability is knowing when to accept that 'book loss' as real. The idea is to let this one expire worthless so you don't have commisions closing it out. If it moves adversely against you, it likely will do so quickly. If you're ok with a 5% return, then you can probably get out in two days. Accepting the additional risk of holding through expiration just to save commissions is another mindset that you will have to change to find success as a trader. Are you saying that you are not ok with a 5% return in two days? When Gordon Gekko said that 'greed is good' he did was not refering to this type of wager. Good trading to you Mark http://www.mdwoptions.com/Premium/home-page/