How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

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.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: XOsDaWAY2GO who wrote (9872)	3/4/1999 8:19:00 AM
From: Herm	Read Replies (1) of 14162

You asked how would you sell PUTs? Well, there is always a chance that the PUTs are exercised and you have to buy them at the agreed strike price you sold the PUTs. That is what is meant by "putting it to you." Of course, if the stock move up you don't risk having to buy the stock. Now, if you are paid a premie say $3 for a PUT and you HAVE TO buy it for the $30 strike price, your net cost is $30-$3=$27.00. Now, if you turn around and write a CC on that stock you can generate revenue. Hopefully, you will be applying all the WINs considerations to determine where the stock is heading in the cycle. By the way, you can write a naked CALL if you are approved for it. I don't recommend that at all. Your question should be answered by the above explanation. Otherwise, please do get the WINs PowerPoint presentation and review it very carefully. Another, good tutorial is the free CBOE Options ToolBox which is an interactive tutorial. You will have to register first. They will mail you location and schedules for their excellent free option workshops. cboe.com.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next