A side note on put selling; I sold some June JDSU 200s today. That's because, as with QCOM when it was in its most volatile up/down spiral, I feel confident JDSU will soon make a run (perhaps very soon, i.e. pre split), and even those Junes will deteriorate rapidly, and I can buy them back for much cheaper, pocketing good gains.
Meanwhile, I must say I disagree with a few people here about the end goal of put selling. I think it is flexible. Pocketing premium is one good deal, but sometimes you might also want to be put, as LoF you said you sold CREE 110s wanting to be put (was that the right strike I recall?). In such a case one will tend to pick a strike that is riskier, i.e. higher than if one wanted to play it very safe, and thus sell puts below a firm trading range.
Jill |
