Chen; it may sound crazy..but the 50s are a better bet than the 55s
for july.
tscn.com
again ( forget premium for a bit, or were the value is or should be
forget numbers ) you are dealing with human nature.
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You buy puts , you later want to sell, if they are out of the money
who all is your costomer base..focas on the selling for now
not the buying, selling is every bit as critical as buying, OR more
SO..out of the money selling is more importent, in the money it still is , as what kind of premium you can get, depends on not just the
price of the stock, but on supply/demand end of the pool you are
in. Each option has it's own pool and acts accordingly..to the
people in it..and the "price they paid to get in".. if they got
in cheaper than you..you will not get as much premium when you sell,
than if you got in cheaper than them..on top of that you can cut
price if need be darn it think selling, look at the pool,
get in the pool were you are in percentage wise lower than almost
every one else in that pool. That's what 80% of the people miss
the "selling" is not something you can drag out of the air or
say put a percentage on by just pure quess..it's going to hinge
a lot on the relitivity of the what the other puts/calls in that
pool were bought at..did you get under the most..even if she moves
into the money this is an importent question, as to how much premium
you can get. What you can get is more importent than what you pay,
and you got to have a way of figuring it, that does not just depend
on the price of the underlying stock. If you get $1 puts..and there
are 4k out and at $5..man..before she gets in the money you got
leverage as thoes who bouht the $5 ones early..may well be your
customers..as she moves your way a lot will say I'l average
down..chances are you can get a damm good premium..just to let
them average down. KEEP also in mind the OI..is kinda like volume
in a stock, your not liquid in a small pool..your more depended
on the stock coming in the money..small pool no good..unless in
the money.
BTW 50s best I may bid 3/8..not over 1/2..if I don't get any fine
55s pool no good..they will be under you..60 no good.
Jan don't buy any..they are to good for you to have.
Aolmu is not too bad at 15/16..
Jim
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