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 : The Covered Calls for Dummies Thread
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: harmonyss who wrote (4632)11/27/2006 10:42:50 PM
From: Bridge Player   of 5205
 
<< You've just bought some more RIG, a stock you like, at a lower price than when you sold the put. >>

I should have said: at a lower price than the market price was when you sold the put. Presumably, you sold an out-of-the-money put. Yes, you get put at the strike price of the put you sold.

<< Selling puts is a bull strategy.>>

Selling puts (and selling covered calls also) can also be a strategy for a neutral or flat market. In any event, regardless of the type of market that prevails, one excellent guideline is, never sell a short put on a stock that you are not willing to buy at that price, less premium.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News