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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: the options strategist who wrote (739)	12/7/1999 3:07:00 PM
From: OX	Respond to of 1235

if i read your Q correctly, my answer is... it depends on what ones goal is on writing the naked put: whether it is to own it, generate a little income, to close out a short, etc. possibly the biggest disadvantage (at least to me) w/ selling naked puts is that they will lose time value faster the more they are ITM. and conversely, they keep more time value OTM. but in the right circumstances, i still like it, but only on strong underlying i would not mind owning if i absolutely had to. the only reason i would write DITM puts w/ little timevalue is if I was positive it would rocket up above the strike before expiry. or if I really want to own the underlying. I rarely do either and usually write naked OTM puts.