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


To: taxman who wrote (1061)1/26/2000 7:57:00 PM
From: Cesare J Marini  Read Replies (1) | Respond to of 1235
 
Except that your argument assumes that I would sit back and do absolutely nothing after writing the put.

If it looked like the underlying was taking off after I wrote the put, I could just as easily buy the stock and buy back the put to close it. Alternatively, if the stock started to tank, I could simply close the put and roll out to a lower strike (or wait for it to stabilize and then go long).