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Politics : Formerly About Advanced Micro Devices

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To: DRBES who wrote (56231)4/24/1999 7:37:00 PM
From: Elmer  Read Replies (1) of 1571723
 
Re: "You buy puts when you are very negative on a stock. You write (and hence sell them) them when and only when you have an extremely high level of confidence that a stock cannot decline and can only climb. You write or sell puts because when a stock holds or ascends the puts expire valueless and you get to keep the premium from the sale. "

Seems to me you don't write many puts. I write puts all the time and I don't need an "extremely high level of confidence that a stock cannot decline and can only climb". I wrote a lot of AMD puts at $10 because I don't think it will go that low by expiration day but if it does I don't mind owning AMD at <$10. If I don't want to get assigned I can always roll them. You probably don't knowing about rolling them either. There is good money to be made writing puts. You should look into it.

EP
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