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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: edamo who wrote (143634)10/2/1999 5:25:00 PM
From: PAL  Read Replies (1) | Respond to of 176387
 
how many losses against the call buyers on the thread....think you would be surprised of the folks who sell puts, its such a simple strategy that complex minds look over and dismiss....

Like I said ed, some people think that complex approaches will yield higher return. not necessarily. selling option is just like selling insurance, you collect the premium. if insurance companies are not profitable, why are there so many of them?

One thing I can add to selling put option: even though you are not in margin, do not get overextended. know the capacity. a person might get greedy and sell a ton of put options and not prepared when the market heads south.

paul



To: edamo who wrote (143634)10/2/1999 7:41:00 PM
From: Ian@SI  Read Replies (2) | Respond to of 176387
 
Ed,

I got the impression from rude's post that he felt this was free money available to anyone who felt like taking it. Nothing could be further from the truth.

Agree that measured selling of PUTs can be quite profitable. And I've shared in some of that on Dell as well as a couple of my favourite Semi Equipment stocks. Right now, I'm in a loss position on some TWE puts which were assigned early, but the stock was paid for primarily out of PUT premiums received; and I expect an excellent return within the next year.

If rude is a more sophisticated investor than his posts would indicate to me, then let him go for it. It is his portfolio after all.

Ian.



To: edamo who wrote (143634)10/4/1999 12:37:00 AM
From: taxman  Read Replies (2) | Respond to of 176387
 
"taxman...believes a short term option buyer always wins....dream on...."

buy options--don't sell them. you won't always win. you won't even win most of the time. but the amount of your wins will greatly exceed the amount of your losses. listen to your taxman.

regards