Options for Newbies -(Help Me Obi-Wan-Kenobe) 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 : Options for Newbies -(Help Me Obi-Wan-Kenobe)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Dan Duchardt who wrote (2153)	8/27/2001 9:32:52 AM
From: Joe Waynick	Read Replies (1) of 2241

Dan I agree with all of your points. I don’t know many investors who can pick a bottom in a stock with any degree of consistency. That’s why I attempt to calculate a reasonable intrinsic value and sell puts below that point. It gives me a margin of safety in addition to the option premium. Add dividends on top of that and over time, I have very little risk of not recovering my principal. In a perfect world, I would do exactly what you say. But alas, it’s not a perfect world. The stock may never go low enough. That happened to me recently with KO and G. They were getting close enough to their intrinsic value that I was preparing to sell puts. Then they took off. Joe

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next