Intel Corporation (INTC) 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.

Technology Stocks : Intel Corporation (INTC)

INTC 45.51

+10.7%

Jan 9 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Amy J who wrote (180428)	3/16/2005 10:20:36 AM
From: Elmer Phud	Read Replies (2) of 186894

Amy I think selling puts is a good idea if you're more conservative (which I'm not) because it's a strategy that requires cash-on-the-side, not in the market - cash that is not put to work. It doesn't require cash, it requires margin which doesn't have to be cash. Try a different perspective: I do not sell Puts with the intention of purchasing shares (although I am prepared to do so). I'm in it for the premium. It works in a bullish, flat or bearish market meaning the share price can drop as long as it doesn't drop below the strike price, at which point I usually roll the Put out and down. By writing both an OTM CC and an OTM Put I am assured that at least one will expire worthless and likely both. You shouldn't look at it as bearish, it's bullish to sell puts. But if the stock drops, I can collect premiums on the way down as I buy the CCs back and rewrite at a lower strike price. Why buy them back? "It's the margin stupid". (Not you of course).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next