SI
SI
discoversearch

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 : Pump's daily trading recs, emphasis on short selling
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Art Baeckel who wrote (6191)12/13/2001 3:02:51 AM
From: Steve Fancy  Read Replies (1) of 6873
 
Art, mishedlo is correct, you don't want to sell puts as an alternative to shorting a stock, you want to buy them. Buying a put is simply a bet that the stock will move lower whereas shorting or selling them is a bet it will move higher or trade above the strike you sold. In most cases buying puts is much safer than shorting as if a surprise buyout were to come along shorts are screwed and losses are potentially unlimited whereas with puts you are only out what you paid for them. You sell a put when you expect the stock to move up and you pocket the premium you received. This is one of the easiest ways to make money from options but also very dangerous. Buying options (calls or puts) you are always limited in risk to what you paid whereas selling or writing options (naked options) is generally much easier to make money but the risk is very high and it only takes one or two bad trades to wipe out a years worth of gains. If you are inclined to mess with options I would only buy them initially. The book I grew up on was "Options as a strategic Investment" by Lawrence McMillan but there may be better books on the market these days. Generally stay away from selling options until you understand how they work like the back of your hand. Feel free to write me if you have specific questions.

Best regards,

Steve
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News