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 : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (14)	8/11/2001 7:10:28 AM
From: rydad	Respond to of 1064

Thanks Dan, The strategy analyzer sounds interesting. But I could not find the link you mentioned. Could you please post it again? Thank you

To: Dan Duchardt who wrote (14)	8/13/2001 12:27:12 PM
From: edamo	Read Replies (3) \| Respond to of 1064

dan....put sales..."if the stock starts falling...you might even get out with a profit..." if you have a penchant to sell puts, it oft times is best to be intimate with the underlying stock, and take advantage of any anomalies in the implied volatility caused by a specific or market news event that sends the share price rapidly down.... real life example....4/12 atml traded at 10.75, falling from around 16, you could sell the jan03 10 strike puts for 3.30....a better then money market return for a cash backed sale....today the common is at 9.75, but the put is 2.70 x 3.10.....so buying the stock would have incurred a 10% loss, selling the put gives a 10% profit... all this to say...look for "special situations".... and once the premium drops below about a half, and if ample time still remains, close it and maximize the per annum return... good luck ed a.