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Strategies & Market Trends : Selling Puts: Have Cash Will Travel

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To: taxman who wrote (862)1/22/2000 10:15:00 AM
From: Tom K.  Read Replies (1) of 1235
 
..."shorting the stock.... that is very risky".... true--but so is selling puts short....

Taxman, investing by definition is a risk oriented venture. Within the realm of option trading, covered call writing is considered a conservative approach.... but, selling PUTs, well...., here's Harrison Roth's (author of "LEAPS...") opinion...."We iterate our view that this technique is similar to, but superior to, covered Call writing."

My own experience matches what people like Roth preach, so I tend to be biased..... selling PUTs is a "less" risky approach....in fact, a bull PUT spread is even lower on the risk chart.

Tom
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