Selling Puts: Have Cash Will Travel Message Board

STOCKTALK

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 : Selling Puts: Have Cash Will Travel

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: OX who wrote (1161)	4/9/2000 11:19:00 PM
From: Tom K.	Read Replies (2) of 1235

...wouldn't you think the likelihood of early assignment grows tremendously... OX, 2 points.... as long as there is some time premium available in the option, there is little likelihood of assignment. It would be foolish on the buyers part. Secondly, if you have the collateral for the stock and it is a high quality issue, getting PUT is not the end of the world. You still have value in a quality issue and you can sell CALLs to come back. And about the fundamentals. I believe that the quality of the issues that you deal in determines the quality of the returns that you will ultimately receive. For example, in January I was PUT some MSFT shares. I've been selling CALLs and I'm confident that the company won't go out of business or plummet so low that I won't be able to recover. And as a side point, I always stay somewhat diversified in my issues for protection. The difficulty with some of my posts is that they are snippets of my approach in response to points and probably sometimes don't make sense when out of context. Sorry. Tom

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next