Puts are always naked, there is no such thing as a covered put.
Oh really ?
First, I have never expressed, (or implied), I know it all.
Then...
What are 'married puts' ? or... why could I not have a short position in (say), LU. at price "x" and then write a put with a strike price lower than 'x' ?
So, in my position, which sees that LU would continue to fall (at 50), and that I am not sure where will LU would stop falling, yet at certain price I would like to own it, and historically, LU has been capable to come back eventually. At what price do I do that ? and why not get the benefit of receiving a premium, as I cover my short position ?
A large put position does have to be covered by an adequate portfolio margin in the event that the puts are exercised early.
I' ll make sure to tell such to my broker so he has no undue risk for doing business with me.
If you are not absolutely sure about how these work and all the implications, better stay away from writing PUTs.
Thanks for you pompous arse response [which i did not request], but I guess it has been about 2 years too late anyhow.
What I am not sure of,(if you read the question), is if LU has stopped sliding. NOT what were the implications of writing a put.
Please do not respond to me, I have no intentions on engaging in a stupid SI style fart war.
Oh mama, mama, mama .... why, why, why this SI Universe is so full of .... ah never mind... back to lurking, safe from idiots with a typewriter stuck up their rear end.
Please someone rename this thread:
"The House of the Depressed"
Certainly the PRICE does justice to the name...
HAHAHAHAHAHAHAHA |
