Yes, exactly.
I like to find them in the money a few months out and enter like any other short. Finding the Put with the highest "intrinsic value" (least time premium) is the only trick. Gives you time to be wrong and get away with something like if SEEK goes to 60, say. If you are out of the money, with say 25's, and it goes to 60, your dead. And the tendency with out of the money's is to buy gobs of them because they are "cheap".
Not my game, short or long with options. I need in the money, max intrinsic value and a few months to see if I'm right, or if I'm wrong, salvage as much as possible from time premium, etc. Also, keeps the greed bug away. |
