taxman....selling puts little reward...
you truly don't understand, using your case of qcom moving up 500 points, what do you think you do with the put you sold, wait until maturity????
give me a break, the whole situation of option selling is a dynamic, and unless you can grasp that your mind remains closed to opportunity.
i ask you again to give an example of "big risk"....if the stock moves as you describe, you have less risk as you have not committed any funds, as in a long buy....you've committed capacity, and enhanced your returns. and if you are long at a moment in time, your downside risk is greater then the put sale which if assigned is below current market.
good luck, but please back up your comments with case history instead of opinion of that which you have no experience!!!!! |