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 : Tech Stock Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: W. Clinton Terry who wrote (31451)12/18/1997 9:40:00 AM
From: Tom Trader  Read Replies (2) of 58727
 
>>I take it from what you have said that I may have made a mistake in that I bought puts - at about the level you plan to sell calls. You are looking for the underlying stock to go up and I am looking for it to go down - I was only thinking of it going down to 39 - at which time I planned to close the position. <<

Clinton--we are both looking for the same thing--namely for JBIL to dip down to the 37-39 level. We are approaching it with two different strategies -- I am selling naked calls and you are buying puts. We will both make money if the stock dips to our level. Your approach has limited downside and more upside though the negative is that JBIL need to pull back soon otherwise the time-premium on the puts that you own will erode. Given that I am selling calls, I don't need to worry about the time premium eroding--it actually helps me--but I have, in theory, unlimited downside if the JBIL starts to move up. Now I am long some far month 60 calls -- but that is a long way off.

Hope this clarifies matters.
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