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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: Dan Duchardt who wrote (3659)4/13/2002 1:37:26 AM
From: Thomas Tam  Read Replies (2) of 5205
 
I have thought about this, but holding the puts long would not necessarily result in people holding to expiration. If the stock moves dramatically down, we would probably sell the put and take the gain, again over a short period of time. The mentality would probably be the same that we would hope to lock in profits and when the stocks runs up again we would be puts again to sell on another quick dip. Question is do we buy ITM or OTM puts, as this affects the amount of change with price variation?

I am looking more an more at ratio call selling i.e: 2 short calls to every 1 long common. More bang if the price dips and a little leeway if the stock wants to run a little.

Thomas
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