[weiwei]

I know a pro oil-gas trader who write call option for his hedge fund, while his fund made a killing for the pass few years, thanks to big valitility in oil and gas for pass few years.

He was doing fine when price of crude oil fractuate in the $18 range. Collected a lot of premium at that time.

But he end up getting fired, he loss a lot of money for the fund on those naked call option, because from what I uderstand on writing call, market have to be calm. not volatility to collect money.

Another thing with stock options, the spread will put you in a big disadvantage. On stock option each step is $5 on stock that is over $30. (this is out of memory, could be other then $30). while if you buy individual stock it is only 1 cent.

I done a calculation a few years back on writing option. You can be 80% to 90% correct and still not making money. In other word, you can be collect those preminum for 8 to 9 time out of 10, but that 1 or 2 time will wipe out you profit.

After that, I stay away from options, there are just too many thing against you on options. Trading stock or futures is easier.

weiwei