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 : AMD, ARMH, INTC, NVDA
AMD 213.50+6.2%Dec 19 3:59 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: THE WATSONYOUTH who wrote (72649)11/30/2025 8:24:08 PM
From: neolibRead Replies (1) of 73072
 
You claimed there was huge risk in a cash backed put if the stock tanks in AH, but its no different than holding the stock.

Writing either a put or a call just before expiration is practically zero different than buying or selling the underlying, because the premium is near zero and you are in fact just going to sell or buy the stock at the strike. Why did you claim the risk was so huge? Please note the option of course has to be in the money.

I see no reason to write an in the money option near the close on op-ex UNLESS for some reason the time premium is still very tempting (which of course would indicate that a large move is expected shortly). Instead, just buy or sell the common, it amounts to the same thing.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext