Check out the following articles.
1) Old Man & the Short Strangle - Aditya Birla Money
2) Shivraj Puri - Citibank
3) Nicholas "Nick" Leeson - Barings Bank
All the above three articles relate to option selling and how traders from what is commonly percieved as the "smart money" ie the institutional trading firms,ended messing up their company's finances and reputation.
It's a very common belief among traders that the people who sell options are the smartests in business.Why?because Options have time value.As option sellers get the option premium, they tend to profit during sideways market conditions as well.
Above mentioned traders probably traded with strong directional biases.They never had a plan and when strong trends picked up in the markets, they ended at the receiving end.
Which ever financial instrument you trade there is always a risk.Before you commit your money to a particular financial product, please be aware of its risk
Hope every one gets something to learn from the above articles and never get complacent with their short options trades.
Cheers
1) Old Man & the Short Strangle - Aditya Birla Money
2) Shivraj Puri - Citibank
3) Nicholas "Nick" Leeson - Barings Bank
All the above three articles relate to option selling and how traders from what is commonly percieved as the "smart money" ie the institutional trading firms,ended messing up their company's finances and reputation.
It's a very common belief among traders that the people who sell options are the smartests in business.Why?because Options have time value.As option sellers get the option premium, they tend to profit during sideways market conditions as well.
Above mentioned traders probably traded with strong directional biases.They never had a plan and when strong trends picked up in the markets, they ended at the receiving end.
Which ever financial instrument you trade there is always a risk.Before you commit your money to a particular financial product, please be aware of its risk
Hope every one gets something to learn from the above articles and never get complacent with their short options trades.
Cheers
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