LoF et all - RE <<<selling puts - near-term bearish>>>
Still on this topic??? How many times do you need to be told...You said yesterday that you expected CSCO to get "crushed after earnings"....clearly you were WRONG, as it soars at an all time high, but I will not fault you, or anyone else for taking a view....HOWEVER, you also maintained that because you were expecting CSCO to "get crushed", it would be wise to "sell puts"...WRONG AGAIN...I will fault you for that trading recommendation, although selling puts would have been financially rewarding today for CSCO BULLS...Selling puts ISN'T BEARISH, short term, long term or any term...Selling puts represents a NEUTRAL or BULLISH view on a stock....As the stock price declines, the value of the put will increase....therefore if you are short the put, you will lose money.
Jill posted a very basic list of options strategies earlier today...I think we are all sick of going in circles with you on this topic...If you insist on continuing this nonsense, then please provide an example for all of us on how selling puts is near-term bearish...Don't be so stubborn that you let your pride impede your view of reality...
Here's your stock....ABC company...trading at 100$...March 110 puts are trading at 16$...If I sell the put at 16$, please tell me how I stand to benefit if the stock price declines, and the put becomes deeper in the money... |
