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Old 03-11-2007, 07:55 AM
wsam29 wsam29 is offline
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Re: Writing Naked Puts & Calls - Risks

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Yes, I don't understand him though. THis firend of mine. He has these pretty big losses. Last year he was down $25,000.00, and now he's been doing this naked options writing. Is this a logical move from the stock market?

I like the guy and don't want to see him get killed in the market. Could he? Do you have any advice I can repeat to him? I want to see him succeed.

His father has a $3,000,000.00 trading account...and he's been taking big hits...his losses seem to be getting bigger...$40,000.00 loss alone on the big drop day in the dow recently.

I keep repeating to him that he should lower his risk unit and just see if he can make money with small risk and small gains. Then slowly move higher. He made like $300,000.00 in 1 yr back in the NASDAQ boom days... but I'm scared that walll street will take it ALL back.

These markets today are difficult to trade.
He'll either learn to stop doing what he's doing or he'll blow the account.

Its that simple.

Trading is a right of passage, just because your account is so big, does not mean you are capable of trading that amount of money.

I've been approached to manage money from a friend who has some solid connections in terms of network, in the millions, and I've still rejected his offer to manage money, we're talking maybe $10 million to start.

Its a totally different ball game when you have that much money.

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