Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Wolf speed -- Ignore unavailable to you. Want to Upgrade?

To: Matrix_Man who wrote (2050)	2/14/2000 9:03:00 AM
From: RocketMan	Read Replies (1) \| Respond to of 10714

I like your strategy, which is better than the one I suggested. However, to clarify, I was not suggesting shorting puts. I was suggesting buying puts, then if it drops you sell to close the puts and use the money to go long, either with calls or common. However, your strategy makes more sense.

To: Matrix_Man who wrote (2050)	2/14/2000 10:37:00 AM
From: Wyätt Gwyön	Respond to of 10714

If you are concerned about a pullback, then this is NOT the time to be shorting puts. If you think there will be a pullback, but want to get in now anyway, I would suggest buying the stock and selling calls for downside protection. What you are describing--simultaneously buying stock and selling calls against it--is equivalent to selling puts. Put premium is "downside protection" from underlying price at time of sale. Same as call premium is "protection" against held underlying. Margin requirements may be less for put sale. Also, less complicated than buy-write due to the fact that it is only one transaction instead of two. Don't need to work with a spread broker.