Steve,
Like yourself, I have implemented the selling of covered calls on Atmel for a while in my retirement account (not as long as yourself, though, since I got into Atmel last March). I have decided that there are times when it's better to buy protective puts on my stock when the stock runs up. Unlike yourself, I did decide to buy some Oct 30 puts for $2.00 on Friday. I'll sell them if the stock either drops a point or begins to take off on Monday.
Of course, I could have sold the calls, but I felt more comfortable with the puts this time.
I was wondering if there is any difference, though. Selling the calls or buying the puts are one in the same, true? I think so. But, the problem I have found is that sometimes the premiums differ between the calls and puts, and it is better to act on one instead of the other.
What is your opinion on this?
I also buy calls and puts on the stock, and I've done quite well the last few months. It sure is fun making money on the way up and down on this stock. The hard part to understand is why a solid company like this would get pounded down from 42 to 22, though. But, that's high tech for you.
Thanks. |
