Can't respond to the book questions, not having read any on options, but my personal opinion is that posts about other options strategies are welcome. My impression is that the thread title, in addition to being catchy, is meant to imply the journey into options land by relatively unsophisticated investors. Covered calls seems to be one of the most conservative approaches and various posters had been dabbeling in them when the thread started. As always, JMO, but I have yet to see the content police called in any form.
I did end up selling 2 QCOM calls Friday, so I am back to 6 contracts out. I got 5.42 each for the Jan 03 140's. I have sold this one before and is back to my original strategy of selling calls against my most expensive shares at a strike well above cost, mostly ignoring the time element. Previously sold for 6.52 and bought back for 3.97 between 5/3 and 6/13. All in the IRA. A low risk dividend, with trading possibilities thrown in.
Regarding puts, I was thinking of selling the following:
2 NTAP Jan 03 10's @3.70
1 SEBL Jan 03 25 @4.50
1 QCOM Jan 03 50 @10.20
Knowing very little about puts, I have no feel for the merit of this plan, but feel that I would most likely be willing to buy those stocks at those prices, and that 18 months will give me ample opportunity to get a starting point of understanding and maybe chances to trade.
I will be obligating myself to keep $9,500 in cash for 18 months (not really, I know, but under my own rules for now I would), for which I will be recieving roughly $2200 now, so my total investment is $7300.
When I put the whole thing into a word proposition, I don't find any negatives I am unwilling to risk, and a fairly decent return, especially for a learning experience.
Any opinions about this fairly clumsy, unsophisticated first take?
TIA
ARS |
