SI
SI
discoversearch

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 : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dr. Id who wrote (8086)10/28/2000 7:17:46 PM
From: Witold   of 8096
 
Dr_Id
This strategy might be useful currently in the tech area. This sector has been beaten up so badly that we seem to be sitting at the bottom. The "lower" long put would protect you against a catastrophic stock crash caused by, for example, a bad quarter and thus lower than expected earnings. The higher "short" put would allow you to enjoy the profit as the stock recovers.

I am still confused about the stock being "put" to you to buy if you have an active "short put" position. What is the chance it might happen when the stock is moving down? I guess it all depends on the rules of your broker.

This strategy is similar, I think, to the simple one where you just buy a stock and PUTS to protect your stock. But in this case you need to spend your own money. In the previously described long-put, short-put scenario you are paid up front for the short put.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News