Why not just buy the OCLI puts back for 5/8ths? So close to expiration, it probably doesn't matter. However, if expiration was three weeks away, would you do it (to free up margin)?
In essence I have, sort of. I have been selling Mar200/jdsu and Sept210/jdsu and am near margin limit. Those options which are almost worthless serve as an exit door for any margin call. If the market heads south further, then I will cover those tiny options which are SOTM.
Although I sold those put option ATM and ITM, I do not recommend to any newbies. My view is that jdsu will continue to soar, especially inclusion in SP500 is a possibility, but you never know. Should the stock/market go south, I already have repair strategies awaiting to be implemented.
My objective in selling put is to collect premium around 4 to 5% a month. Sept210 put/jdsu is selling around $ 55. Just 20 contracts yield $ 110k. Not to shabby. This is my investment style and I don't ask people to agree. There are many roads to Rome. It just happens that edamo and I have the same approach.
There are more, but I won't bore you with that.
BTW I am not familiar with CREE. Since it works for you, congratulations!
Good Luck with your investment.
Paul |
