Sheer Dumb Luck Award

william the wie

Gold Member
Nov 18, 2009
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I took one look at AAII Investor Surveys and its 1/3 decline in bearish sentiment and I booked my 7+% two month gain. Then I got into the safest put sales possible and I booked a 10% gain in less than a minute, talk about dumb luck. I haven't seen a gain like that since the time some idiot exercised an in the money put against me. If I had as much brains as I do luck I would be extremely rich.
 
some idiot exercised an in the money put against me.

If he had exercised an out of the money put, he'd have been a real idiot.
 
I took one look at AAII Investor Surveys and its 1/3 decline in bearish sentiment and I booked my 7+% two month gain. Then I got into the safest put sales possible and I booked a 10% gain in less than a minute, talk about dumb luck. I haven't seen a gain like that since the time some idiot exercised an in the money put against me. If I had as much brains as I do luck I would be extremely rich.

Options is the best way to gamble with stocks. I made a stupid bet in 1999, betting on a Bush win to cause a rise in certain companies, that paid off Yugely, and then dumped it into gold and housing. Didn't think I would be lucky again, so I parked it. My last ever plunge in Wall Street lotteries as well, and felt like a total dumbass the whole time I was exposed.
 
Simple rule of thumb if you sell options you are making book, if you buy puts you are betting against a house PC, the premium.
 
some idiot exercised an in the money put against me.

If he had exercised an out of the money put, he'd have been a real idiot.

The strike price may be 'out of the money' for some, but not all, and there may be some traders looking to exercise the option at that price; they want those blocks of shares for whatever reason, and probably know something or think they do. Such options are dirt cheap, and those who are good at timing can making big killings, though the risk is large and the time window is of course usually pretty narrow.

Can an OTM Option be Exercised?

This happens mostly with insiders; you likely will never see the activity soon enough to act on it yourself, though.
 
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some idiot exercised an in the money put against me.

If he had exercised an out of the money put, he'd have been a real idiot.

The strike price may be 'out of the money' for some, but not all, and there may be some traders looking to exercise the option at that price; they want those blocks of shares for whatever reason, and probably know something or think they do. Such options are dirt cheap, and those who are good at timing can making big killings, though the risk is large and the time window is of course usually pretty narrow.

Can an OTM Option be Exercised?

This happens mostly with insiders; you likely will never see the activity soon enough to act on it yourself, though.

The strike price may be 'out of the money' for some, but not all

Tell me more.
 
some idiot exercised an in the money put against me.

If he had exercised an out of the money put, he'd have been a real idiot.

The strike price may be 'out of the money' for some, but not all, and there may be some traders looking to exercise the option at that price; they want those blocks of shares for whatever reason, and probably know something or think they do. Such options are dirt cheap, and those who are good at timing can making big killings, though the risk is large and the time window is of course usually pretty narrow.

Can an OTM Option be Exercised?

This happens mostly with insiders; you likely will never see the activity soon enough to act on it yourself, though.
the money is still good even without the OTM
 
I took one look at AAII Investor Surveys and its 1/3 decline in bearish sentiment and I booked my 7+% two month gain. Then I got into the safest put sales possible and I booked a 10% gain in less than a minute, talk about dumb luck. I haven't seen a gain like that since the time some idiot exercised an in the money put against me. If I had as much brains as I do luck I would be extremely rich.
In the money for me. Sorry if I confused you
 

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