SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: SecularBull who wrote (152756)1/31/2000 3:15:00 PM
From: TigerPaw  Read Replies (1) | Respond to of 176387
 
OT Puts

For what it's worth... You can sell puts after you have shorted a stock. These are then considered "covered" puts instead of "short" puts or "naked" puts. Some short sellers do this to get another dollar or two out of their position.

TP



To: SecularBull who wrote (152756)1/31/2000 6:53:00 PM
From: edamo  Read Replies (1) | Respond to of 176387
 
lof...ot ot ot "let's not spread misinformation"

how is selling naked puts near term bearish???????????
the only way you make money on a put sale is if the stock has a neutral to upward bias during the term of the contract....therefore it is a bullish strategy...and if you sell current expiration, as in february, there is no near or long term.......are you near term bearish if you go long a stock????? no difference..........



To: SecularBull who wrote (152756)1/31/2000 7:56:00 PM
From: rudedog  Read Replies (1) | Respond to of 176387
 
LoF -
I think selling naked puts is moderately bullish even near term - the bet pays off if the stock goes up a little or at least does not go down. Selling covered calls is less bullish - the assumption is that the stock will not go up to the strike but will not go down much either - then you keep the premium and the value of the underlying is unchanged.

<edit> I see others have already done a better job of explaining this.