Chris, Micron should report next week. And the analyst estimates are still WAYYYYYY too high. Latest pricing on 16 Mbit chips is as low as 99 cents. MU is always higher, but, then, they are storing chips in inventory, not selling them. -g-
Short stock, short put is a covered put, in that you are actually short the stock if the stock goes down. So, if somebody puts it to you, you will be net, net even. The reason brokers don't like it is because you have infinite risk if the stock goes up (actually infinity less the premium on the put -g-). In fact, short stock, short put is exactly the same strategy as selling a naked call and holding cash. And we know what brokerage margin clerks think of riding naked on a call. -g-
The funniest thing about the margin business is the buy stock, sell call strategy. This is exactly the same thing as shorting a put and holding cash. If you do the buy and write, you are "conservative." If you sell the put and hold cash, the margin clerk has a cow. -g- Same strategy exactly, same risk, same reward. It just goes to show that semantics do matter to the folks with helium in their brains.
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