Let me just make this simple for you...
If you are near term bearish, it would be in your best interests to BUY PUTS, or WRITE CALLS, as you will capitalize on the stock price's depreciation...You can then BUY THE STOCK, at your lower price....In this instance, you have gained the premium of the calls you wrote, or gained the price appreciation of the put...Now, with the stock at a lower price, liquidate your options, and initiate a long position....You have now realized a financial gain through your options play, which gives you a cushion on your LONG STOCK position...
Is there anyone on this thread that doesn't understand this...Jill, I know you and Poet must see this as very straight forward....I think we need to put this to rest, and find something more significant to talk about... |
