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Pastimes : All Clowns Must Be Destroyed

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To: pater tenebrarum who wrote (17339)3/14/2000 6:41:00 PM
From: Zach E.  Read Replies (1) of 42523
 
I think that selling cash-secured puts (pretty much the same thing that you are talking about, I think) is a good strategy at times also. It is kind of funny that the brokerages consider covered-call selling to be OK for novices, but put-selling is at the highest approval level (at Etrade, at least), since they are equivalent strategies. I guess that the margin requirements for selling naked puts (20-30% ?) are lower than the requirements for stock ownership, but I would never go that far out on a limb..
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