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Technology Stocks : Dell Technologies Inc.
DELL 134.22-1.3%3:24 PM EST

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To: rudedog who wrote (143731)10/4/1999 2:06:00 PM
From: taxman  Read Replies (1) of 176387
 
"the worst that will happen [if i sell puts] is that I will own a good stock at a bargain price."

the price you pay (strike less the premium) may turn out not to be a bargain. a stock that is considered "good" today may be considered a "dog" a few months later.

but the main drawback with this strategy, in my view, is the lack of upside potential. if the price appreciates markedly your gain is limited to the premium.

regards
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