Even under these conditions, a naked writer (of call options) is vulnerable to a potentially unlimited loss and margin calls could wipe out some or all the positions; remember, the angel said nothing about the prices between the initial and ending dates.
At first, the information provided by the angel seems to be worth a lot; but, a far as I can see, pricing this information is not a trivial exercise. On Sat, Feb 1, 2020 at 5:04 AM R.E. Boss <[email protected]> wrote: > > Plus: sell the corresponding calls. > > > R.E. Boss > > > > -----Oorspronkelijk bericht----- > > Van: Chat <[email protected]> Namens Devon > > McCormick > > Verzonden: zaterdag 1 februari 2020 01:12 > > Aan: Chat forum <[email protected]> > > Onderwerp: Re: [Jchat] Introducing J to Financial & Actuarial Students > > > > It seems trivially easy: buy out-of-the-money puts, based on today's price, > > expiring shortly after that date. > > > > On Fri, Jan 31, 2020 at 6:09 PM Jose Mario Quintana < > > [email protected]> wrote: > > > > > > Yes, I lost a bit dumping it when it started to take off. > > > > > > Oh well, it could have been a lot worse. > > > ---------------------------------------------------------------------- For information about J forums see http://www.jsoftware.com/forums.htm
