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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Kirk © who wrote (9533)10/28/1999 11:39:00 AM
From: MrGreenJeans  Read Replies (2) of 15132
 
Buying and Selling of Options

Put selling by itself means nothing in particular. Without knowing other option positions in the portfolio one does not know whether it is a bearish or bullish sign.

Further, I often sell puts because it is a cheaper why to buy into equities I want to own. I sell the put, pocket the premium, let the price of the equity go through the option strike, have the option "put" to me, and become an owner via a stock purchase of the company albeit at a "discounted" price.
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