The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: ChanceIs who wrote (199044)	4/30/2009 6:37:12 AM
From: dealmakr	Read Replies (1) of 306849

"You should be able to buy puts. I know that you can sell cash covered puts in an IRA. Selling options (calls or puts) is always more risky than buying them. Selling cash covered puts (naked) isn't any more risky than buying put premium outright as your cost of ownership in the underlying is established when the trade is put on. When purchasing a put, you have to decide what strike price and expiration cycle best fits into your trading plan and then hope that your analysis is correct, otherwise that purchased premium will evaporate. Selling naked calls however will increase your risk exposure over a covered call write and are not a good play for the novice trader. I would recommend this book as a learning tool in trading options. An Investors Guide to Understanding and Mastering Options Trading / Bill Johnson Regards, dealmakr

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