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Strategies & Market Trends : Options

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To: SecularBull who wrote (5999)4/4/2000 8:30:00 PM
From: Poet  Read Replies (2) of 8096
 
Argh! I'm not a great advocate of triangulation, so let's just speak for ourselves. I agree that the risk in buying a call is limited to the price of the call, where the risk in selling a put can be higher, IF you are not willing or able to be put the stock and IF you are unwilling or unable to execute a repair strategy.

In very volatile times like these, when deltas are terribly inflated, selling options takes advantage of both the inflated delta and the inevitable time decay of the option. I'm not against buying calls, Loffy, I'm just increasingly aware of delta and theta and less willing to finance all of my options positions. by incorporating option sales, you can have "the house" finance your trade. It's a more cost-effective and elegant way to trade.
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