Short-termSelling Puts (Covered Calls by another name) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Short-termSelling Puts (Covered Calls by another name)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Rocky9 who wrote (20)	2/14/2006 3:53:08 PM
From: KCMuu	of 66

Thanks for the feedback That backs up my feeling on this. It does seem that you can 'throttle' your risk level to a degree. Strikes below the stock price provide lower upside but some protection. Strikes ATM a balance. Strikes above the stock price is closer to the risk/reward of outright owning the stock. Yep, if everything tanks, I go down with it - but by ~ 7% less than just owning the stocks. So far, this is a reasonable trade-off for me. Diversify vs a sector? Well, I think it was Mark Twain who said 'Put all your eggs in one basket, then watch that basket very carefully'. There might be some merit in that. Good luck - I look forward to following your trades. -KCMuu

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next