The Covered Calls for Dummies Thread 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 Covered Calls for Dummies Thread

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: PoetTrader who wrote (2081)	8/17/2001 12:14:37 PM
From: Road Walker	Read Replies (1) of 5205

Poet, Remember on that trade you are doubling your risk, with both the underlying and the short puts. If disaster strikes... Think what happens if the stock goes to $40. It's not fun buying $40 stock for $85. Another play in a dicey market is to take some of the premium from the call sell, and buy a farther out of the money put. You still collect some premium, and most of your downside in protected. Not a home run play, but a fairly conservative options strategy. (called a collar) John

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next