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 : Qwest Communications (Q) (formerly QWST)
Q 77.78-0.9%10:10 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mathon Dabasir who wrote (675)1/23/1998 11:41:00 AM
From: Chris Singer  Read Replies (1) of 6846
 
Hello Mathon,

I'm not sure I understand options completely and have a question.

>btw: Since you were so kind, I'm long QWST, sell PUTs against my
>underlying, and sometimes trade
> the waves with smaller in/out margin positions.

Suppose you sell someone a QWST Apr 70 Put. This gives them the right to sell you 100 shares of QWST at the price of 70 until expiration in April? If I have this correct, how are you selling PUTs against your underlying QWST share? I understand if you sell CALLs against your underlying shares you are pledging your stock to cover the options in event of exercise but I'm not sure how it works with selling PUTs.

I am trying to get a clear understanding of different ways options can be used in different situations. Thanks for your patience.

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