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Strategies & Market Trends : Selling Puts: Have Cash Will Travel
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To: jhs565 who wrote (1095)2/5/2000 12:26:00 PM
From: OX  Read Replies (1) of 1235
 
first congratulations on your profit.

I would venture to say there aren't many who play very DITM LEAPS NP's (for the short term) as you did. It's counter to the old adage of 'sell time value, buy intrinsic value'.

In your situation, IMO you exposed yourself to more risk than you needed to for a short term play.

I don't know qcom's price when you sold your puts, but on 1/26 qcom was anywhere from (approx) 120 to 131. the prem rec'd only 'protected' you down to 120. I'm pretty sure you could have a sold nearer term ITM puts (Feb, Mar, or for better risk-reward, Apr's) for more downside protection and (most likely) just as much (if not more) ST profit potential. (or sold similar closer ITM JAN01 for less profit potential, but also for more downside risk protection)

I think others on this thread would be interested in knowing how you came to chose YQOMD and what your price targets were at the time.

Thanks for posting your trade.
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