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Politics : Formerly About Applied Materials
AMAT 223.31-3.2%Nov 13 3:59 PM EST
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To: Sam Citron who wrote (43165)3/5/2001 10:07:51 PM
From: Ian@SI  Read Replies (1) of 70976
 
Sam,

If you sell a LEAP put, you must be prepared to have the shares PUT to you at any time between now and the LEAP expiration. That obligation may be sufficient to make one hesitant about actually buying stock just in case it doesn't go up.

Downside of selling PUTs, LEAP or otherwise, is that all you get is the Premium which may not be sufficient to cover the downside; and almost certainly wouldn't compensate you for the lost upside opportunity. i.e. If the much feared recession happens, you get to own some shares - perhaps more than you want. If it doesn't, you get to regret not owning the shares.

Just a couple random thoughts.
Ian.
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