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Technology Stocks : Dell Technologies Inc.
DELL 133.92-4.9%Nov 13 3:59 PM EST
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To: edamo who wrote (109585)3/15/1999 7:43:00 PM
From: PAL  Read Replies (2) of 176387
 
Hi edamo: Excellent post!

You took the words out of my mouth, however I would never be able to articulate as clearly and as systematicly as you. Thank you. Your post should be bookmarked by anybody contemplating selling puts.

I use a discount broker (that is the only broker I have) and buy/sell the options online. I still get charged "full commission", i.e. the rate charged when the trade is done through a live broker. So commission is not a factor.

One thing I might add: when expiration is near and the stock is in or at the money, do not delay in closing the position rather than hoping the option to expire worthless. A few points are not worth the risk to wait until the end. On option expiration day the stock is very volatile, especially 30 minutes before the close. Take the profit if you are ahead, or take the loss if you are behind and roll it to later month. I would repeat your statement

you should never lose "real" money on a put sale...only take tax losses ...always reset position for higher premium... .

Whenever you are behind, just think what an insurance company would do, like when insurers of LA properties suffered big losses from that infamous riot: raise the premium. That is resetting position for higher premium. In selling naked put, we have one ally: TIME and for that we demand time premium (plus intrinsic value).

Paul.
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