options query-why we never sell call options first?

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  #1  
Old 17th September 2006, 12:05 AM
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Default options query-why we never sell call options first?



Gents,

I have read in a trading system.i can not follow the wisdom behind such a fixed rules the owner adopts.
any clues or explanation how it helps?

the owner says,in my system,we do the following
we only buy calls and buy puts
we only sell calls and sell puts.

he says
we dont do the other things like
sell call options, and buy call options later
sell put options and buy put options later.

rvlv

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  #2  
Old 16th March 2007, 05:37 PM
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Default Re: options query-why we never sell call options first?

simple...each system is built around certain stuff...some inputs in the form of data, conditions etc...that are processed based on rules which may be indicators, market internals, spreads, cycles, patterns etc.....an output to take action in the form of buy/sell etc ..and closing action in the form of profit target/stops etc...since option buying and selling are completely opposite sides of the two coins..u may find systems that do not do both...as linda (LBR says she had two bosses..one made a living selling premium and the other bbuying it)


and there are systems which do both and a combination of both to generate a no of strategies...

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