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Strategies & Market Trends : Options

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To: Jill who wrote (8085)	10/28/2000 6:22:25 PM
From: Dr. Id	Read Replies (2) of 8096

Jill, While you're entirely right on puts, it didn't really answer his question. If he has the money in a 6% investment vehicle and doesn't touch it, he'd have most of the money to cover his account if the stock were put to him. It does sound like a scenario without too much risk (given the scenario of selling way out of the money puts and buying puts slightly below the current price) but I'm wondering what the point of it would be? If you think that the stock isn't going anywhere or going down, this strategy wouldn't provide much benefit and some limited risk. If you think the stock is going up, why not just sell below the strike price puts and buy calls above? Or just buy the common? I think I'm missing something (I just confused myself!):-) Someone help us out here! Dr.Id@whatthehellhappened.com

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