SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Poet who wrote (2817)2/12/2000 9:46:00 AM
From: Jill  Read Replies (2) of 8096
 
PAL has an elegant way of taking cash in and using it to buy stock or calls--and calculating a trade for a trade, so to speak. On the other hand, cash in has other purposes as well:

1) You can apply it to the cost basis of your stock, thus reducing it. For instance you own QCOM, you sell puts on QCOM, and you simply consider that cash as a way of reducing cost basis and increasing profit. Same for covered calls.

2) You don't have to do an eye for an eye...your trade was fine, it's more the premium you get based on volatility/timing as ed points out, AND the strike price you choose that are important.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News