Knight/Trimark Group, Inc. Message Board

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Non-Tech : Knight/Trimark Group, Inc.

KCG 20.00

0.0%

Aug 17 5:00 PM EST

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To: Gary Korn who wrote (4535)	10/3/1999 10:20:00 PM
From: Sundar Rajan	Read Replies (1) of 10027

Gary, very interesting take on selling puts vs buying calls. >> Instead of buying a call for $7 (meaning that the stock needs to be $37 in April for you to break even), why don't you SELL the April 30 put for over $8 (meaning that the stock needs to be just under $22 for you to break even). >> I have also thought about selling puts on EGRP, AMTD, NITE etc. I did sell some Jan 37 1/2 puts on SCH when it was 38 but I am losing money although not much. I guess the difference is your maximum upside is 7 or 8 $ assuming NITE is above 30 in january - which I think it will be. Suppose NITE has a explosive run like before put sellers won't participate in that. Overall, I have to say that I have made more money on selling puts than buying calls based on about 2+ years experience. I made 400% returns several times on INTC calls in 97 and lost all of it and more on other call positions. It is difficult to decide which is best. What do you think of buying leaps on really I beaten down names like G, KO, MYG, RAD and many of the drugs? Selling puts on these doesn't fetch much premium.

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