Loffy,
No one can say with any assurance that taking any position in this market WILL result in a profit. That's why I used the word "could" rather than "will" when I wrote about selling puts on BRCM.
Just about everyone I know who trades options started out by buying calls. It's a good strategy in a bull market. But not every market's a bull market. To me, limiting yourself to buying calls is like limiting your diet to chocolate: it's delicious but over the long term if you want to survive, you vary your diet.
Selling puts differs from buying calls in that there are repair strategies to put selling that do not exist with call buying, unless, of course, you're approved for, and willing to set up, a spread.
As far as taking a short put position, you can position yourself when you think the selling is done, with the intention of riding the premium down to zero, or you can take a position when a stock is temporarily oversold (as I did today on BRCM) and daytrade or position trade. |
