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.

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

To: Greg Higgins who wrote (1185)	4/11/2000 1:29:00 PM
From: Robert T. Quasius	Respond to of 1235

My strategy in selling puts is to sell puts with a strike equal to what I would pay for a value stock if I were to go long, because that might just happen. If the stock tanks, I consider it as if I were long the stock to begin with. Of course, if the stock goes up then I pocket the premium and move on.

To: Greg Higgins who wrote (1185)	4/11/2000 1:58:00 PM
From: Tom K.	Respond to of 1235

...You're totally ignoring the fact that it's also 20 months out!.... Greg, of course a DITM PUT can be exercised..... but, that can also be part of a strategy. And without a doubt, you can find an exception to any strategy, so I don't want to banter over the infinite possibilities. You're correct in what you say, I acknowledge it and apologize if I've not shown respect for the accuracy of your point. I've been using a short PUT strategy now for several years and it has been working fine for me. I maintain hundreds of open contracts and have never had a stock put to me that I wasn't prepared for. Can it happen if I'm not prepared and don't watch carefully, of course it can! Should I abandon my money maker because of the possibility.... should people in California abandon home because of the possibility it might fall into the ocean....yea, right. Tom