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Strategies & Market Trends : Tech Stock Options

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To: Tom Trader who wrote (31083)12/12/1997 12:06:00 PM
From: MonsieurGonzo  Read Replies (1) of 58727
 
Tom; RE:" Short OEXLK DEC 455 Calls Day-Trade "

...Congratulations on a job well done, Tom. I was paper-trading the purchase of DRG.X index DRXXD DEC 520 PUTs on a play from open bounce (to 523-1/2) to ~520 selloff. This play-trade yielded a gain of +1, from roughly 7 ASK to 8 BID.

Your play was OEX open bounce (to ~459) to 455 selloff. Being new to all this, I was curious as to what the (probably many) reasons are why one would short CALLs rather than purchase PUTs. When you have the chance, would you be so kind as to elaborate on why a trader shorts CALLs, and why he/she would buy PUTs instead ? merci

-Steve
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