The Options Box 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 : The Options Box

QQQ 629.07

+0.5%

Oct 31 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: unctarheel who wrote (10773)	5/9/2001 8:08:17 AM
From: Poet	Read Replies (2) of 10876

Hi unctarheel, Great name, BTW. Selling a LEAPs put is a play for the very patient, as the rate of decay (which the seller is depending on for his/her profit) is very slow. And yes, I believe the chance of being put the stock before the sold put has a chance of much decay is relatively high. If I were to sell a long term put, I'd go closer to the money. In a raging bull market (ah, the heady days of 1999!), I regularly sold way OTM (out of the money) front-month puts because one could rely on the upward direction of the market and the rapid decay rate of the options. In this market, where we may well be faced with months of sideways trading, I'd be loath to make a play of this nature.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next