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 : Micron Only Forum
MU 292.63-0.6%Dec 30 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TREND1 who wrote (34472)6/6/1998 11:45:00 AM
From: Knighty Tin  Read Replies (1) of 53903
 
Larry, Heaven forbid that I should ever recommend doing something bullish with MU, but buy and writes on a stock in the 20s make more sense than a stock in the 50s, as there is less absolute downside. I.E., you only lose 18 points when it goes to $6, not $44 points. -g-

You can liberate a lot of premium with credit bull spreads, and they have the advantage of using puts, which are odd critters. Even when you are wrong, if the retreat is somewhat orderly, you can often get out with a small profit or a minimal loss. This is because the put you are short goes to intrinsic value quickly while the out of the money put you bought picks up premium quickly. The same cannot be said when you have to lug around the ungainly stock.

MB
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