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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST
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To: Kayaker who wrote (91026)1/24/1999 2:08:00 PM
From: musea  Read Replies (4) of 176387
 
Bob,

I think you are right. Selling puts, assuming you have the money to go long, is no more risky than buying the underlying stock. If for example you are willing to pay $80/sh today but instead sell 80 puts. You pocket the premium. If the price tanks, you got the shares at $80 minus the premium. That's better than if you bought the shares at $80. The downside is that you might not get the shares if the price goes up. To guard against that, it seems you ought to roll your puts to a higher strike as the share price goes up.

Of course, I've never done this so you have to consider this analysis in that light. Any comments?

-musea
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