Selling Puts: Have Cash Will Travel Message Board

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

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To: taxman who wrote (899)	1/23/2000 12:47:00 PM
From: OX	Read Replies (1) of 1235

everyone... it's been stated many times that one can't sell puts on just any underlying. underlying, common, natural... rule #1. I for one don't sell NP on anything resembling a inut stock. I'll take the relative sleepers who typically have the same rare chance to skyrocket as they are to tank. Take a stock like Disney. Sure you can miss a good sized move up. Will it go to zero? not likely, but it can. will there be warning signs before? most likely. non-fundamental knockdowns? sure, those are buying opps. these are the reasons I play month-to-month. if a stock moves up, there's nothing to say you can't close the put for profit (or not) and open another NP higher to take advantage. the key to any strategy is wise money management and gauging risk-reward.

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