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 : Compaq
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Night Writer who wrote (29010)7/15/1998 4:56:00 PM
From: Cheap  Read Replies (7) of 97611
 
Night or anybody;

I decided for the first time to play options. I am not very clear about few things though, but I think the best way to understand it is to ask questions about a real example.

First, let's say that my main strike price for July is $40 and I want to sell naked puts, What is the difference between CPQSH and DEYSH?
and why is one priced at 7 3/8 and the other at 1/16?

Now as I mentioned I want to sell naked puts, does this mean if I sell
100 puts of CPQSH and Compaq does not cross 40 within the next two trading sessions that my portfolio goes up about $700? If it does, then why are not lot more people doing it? (I know that I am not a genius so there must be an explanation!)

I know that if compaq went over $40, I will loose quite a bit of money
but don't you guys think that jumping 20% in two trading sessions is quite high? (No offence to Cpq, in the market anything can happen and I don't mean this in any sarcastic way)
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