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appreciate your appreciation, many investors don't understand the power a long position holder has with options....most investors prefer to buy calls and puts,due to leverage(calls)or insurance(puts), but it is out of pocket cash, to make consistent gains you have to be on the opposite side as the seller,receive cash,you then become the proverbial "house" and take the bet...the statistics of the trade always favor the "house", can even buy the common with the cash and increase your portfolio size, less risk plus time depreciation is on your side....i like sap, have no holding,so i'll try backing into it, this morning i sold 60 sapnf feb 30 puts and got a 1-1/4 premium, come feb 19 if the stock above 30, i pocket the premium, below thirty but above 28 3/4 i'm still in the money...can have the stock put to me, or roll the contract forward for additional premium. either way i'm happy...the only wild card with sap, being an adr is the vagaries of the german market, but perhaps someday it will be a nyse stock ala daimler benz... |
