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.
Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Glenn D. Rudolph who wrote (10744)11/23/1997 6:49:00 PM
From: Beachbumm  Read Replies (1) of 45548
 
Well, I'm not confused. I was simply supporting Carmine in what I thought was his assertion that naked put writing is riskier than covered call writing. I believe the fact that brokerages require a higher level of option approval for the former demonstrates this. (Although I understand your view that they are similar trades.)

Yes, you can buy back your put if the stock price is declining, but you can't be completely sure that you haven't already been put the shares, so it's possible your buy order could be rejected. Do you use stops when writing naked puts? Just wondering. I know that in reading your posts you have said that you were put many shares.

I think the covered call writer has more flexibility in what to do with a deteriorating stock price.

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