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Strategies & Market Trends : Selling Puts: Have Cash Will Travel
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To: tyc:> who wrote (895)1/23/2000 10:53:00 AM
From: taxman  Read Replies (1) of 1235
 
"shorting the common would still be the correct way"

for the sake of this discussion, let us assume that shorting is the correct strategy. i see two problems with this:

1 you need an uptick to short, and

2 you do not receive interest on the money coming into your account as the result of the short sale. a way for the broker to make a few bucks at your expense.

so what i would suggest is that, instead of shorting, one:

1 goes long the put, and

2 goes short the call

i believe this alleviates the two negatives of short selling that i mentioned and achieves the same result.

regards
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