Thean -
Long winded?? Well, I can't argue with that <G>
I don't "own" the stock, meaning I am not long stock trying to protect with puts. I am long puts and when they start to appreciate significantly, I sometimes want to hedge to preserve their value. I constantly re-evaluate my positions, asking, "what is the worst that could happen?" (Because, many times, the Worst has happened <G> and I was unprepared).
Let's say you had my put position - the 60s are about $2.50 and the 55s are around $1. How would you protect and take profits?
Shorting at the money calls is high risk/low reward in this current market environment, IMO. Unfortunately, many folks who have been doing buy-writes have probably gotten killed the last 3-4 months. Maybe doing sell-writes (short stock and sell puts) will be a profitable strategy once we drop another 1,000 Dow points.
Re: Continued Volatility - I agree.
Re: Stop Orders for Options, I will have to look into that. I live outside of Medina, 30 miles south of Cleveland.
I appreciate and enjoy your posts (espcially when you rib LT - a guy who definitely deserves it).
Mike |
