Replies to post #61501 on Option Millionaires

[Churak]

If I were to type them, it would take hours and pages.


excellente! so you should be done by tomorrow?

[Gssound]

Excellent description of naked selling. This is isn't a trade for the beginner, heck most time not a trade for the vets. It takes maintenance to put these trades on. Most of the time it's just not worth the risk.

An easier play than selling naked it to enter into a debit or credit spread. Spreads are a great play because you define your risk and know the potential profit right from the entry of the trade.

For anyone trading options please get this book, Options as a Strategic Investment by Lawrence G McMillan.
I have been trading options for years and still turn to this book on a weekly basis, it has all the dynamics of options trade, what why how when who.

[goodluckchuck]

Ok, thanks for that info. So it looks like one could sell short 10 calls of say RIMM @ .50 cents on a Thursday and as long as the Stock RIMM, falls in value, one could buy to cover the calls the following Friday afternoon of expiration probably for a few cents. All the difference from the sell @ .50 cents to the buy to cover price of a few pennies would be profit. Is this a strategy which could work considering most out of the money options go to zero by expiration day?