Carl,
>>On the other hand, in the past when I have tried to short VECO, Schwab always calls to say that there are no shares available, so I have skipped several good calls.
I have had this same problem. You would think that someone as big as Schwab would have shares. I have since just gone to buying deep, in the money puts when I want to short. It really is more effective. You pay little time value (deep in the money) and if the price rises on you, the option drops in value slower than the stock increases. IF the stock drops in price, the option moves dollar for dollar. The only downside is that deep in the money Puts do not exist at times, and also if the stock moves slowly, you may have to roll the options further out in time. You also got a wider spread.
If I may ask, what did you have to do with Scwhab to allow you to go naked on calls. I am at option level 2, you apparently are at level 3. It burns me up that they will allow me to short a stock, but not allow me to sell naked PUTS. Selling naked puts is LESS risky than shorting.
MArk |
