<I had taken the premium I had gotten from the put sale and had bought JDSU Mar 200 calls at $30.>
Question, Poet:
Why buy calls, if writing puts offers a very nice premium, and a bit more safety?
Also, and this is open to all who want to share their input;
I've noted that the info shared on JDSU put writing in the near term (Feb. and Mar.) is generally being done around the share price of 195-200. In regard to longer term (Sep.), I've noted Ed, Pal, and Jill had mentioned writing the Sep. 200 as well. I realize the 200's offer a very healthy premium, however, if I anticipate JDSU share price to move upward over the next 6 months, should I also consider writing the Sept. puts at a higher price? For example, the Sept.240's have a premium of about $70. If I got the stock "put" to me in Sept, I would effectively be paying $170 a share. Your thoughts? All responses welcome!
TIA.
Donna |
