well if you have 10 million dollars invested at 5%, 500,000 dollars a year should be easy. otherwise i can't see how selling naked puts is easy money. do you think the put buyers are stupid?
I don't care who is stupid and who is smart. Actually, my vague understanding is that there is not necessarily a put buyer on the other side of my put sale. The market maker/specialist (?) just does an offsetting transaction when I short puts.
You don't see how selling naked puts is easy money? Of course it depends on the stock, the strike, and whether the stock was high or low when you shorted. I shorted my JDSU Jan 01 100 puts for $20.00 a week ago or so. That's 25% (20/80) in 10 months. If I'm put JDSU at a net of 80, I think I can live with it.
well if you have 10 million dollars invested at 5%, 500,000 dollars a year should be easy.
You ignored what I said about supplementing it with short puts. Shorting puts like the JDSU example above, I don't need anywhere near $10,000,000 to make $500,000 a year. And if I only make $250,000 a year, I can live with it. |
