SI
SI
discoversearch

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.
Non-Tech : The Critical Investing Workshop
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jill who wrote (29350)8/17/2000 8:35:26 PM
From: RocketMan  Read Replies (2) of 35685
 
So you had elon at 35 now suddenly its 25. So you say, okay, I'll buy-write at 25, it's percentage income I'm after and that remains good. But then that month, it RECOVERS and you get called out at 25. Now all you have is 25.

Wouldn't that problem not arise if you buy-write right away? If you buy at 35 and write at or near that right away, if it goes to 25 you pocket the premium and write again the next month, though for a lower premium. I agree that if you buy at 35 and it drops substantially, then you write, you are at risk of having it called at a much lower price, and you have a net loss. So the strategy should be to buy-write at the same time. Right?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News