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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Elmer who wrote (117194)6/22/2000 4:59:00 PM
From: niceguy767  Respond to of 1583847
 
Fuddy:

Re: "First off I haven't invested anything and I still don't see how selling 1 put contract at today's price is any more risky than buying 100 shares at the same price. Please explain this. If I couldn't afford to accept assignment I shouldn't be selling a put but the same could be said about buying the shares. The only difference I see is with the put writing I would end up with the shares at a cheaper price than if I bought the shares outright assuming a price decline. My real intention is to have the puts expire worthless."

Comment: It's called ROI, Fuddy...or LOI...Your LOI is likely to be far greater on naked calls on a given significant adverse price move than your LOI on an equivalent number of shares for the same significant price move...