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

To: edamo who wrote (45)	8/16/2001 12:40:48 PM
From: Thomas Tam	Read Replies (3) \| Respond to of 1064

But you can't control when the stock would be put to you. Although you can make a guess based on the time premium afforded on the put. However, are you comparing apples to apples when you consider a buy/write at 46 for JNPR (don't know which call you are writing) and a put sale of the Jul 35s. You are comparing a gain of $.25 per share or $25 per contract to an unknown return with the buy/write (unknown since a call wasn't chosen for comparison). I agree with you that if it was a choice between a straight buy/write at the strike (Buy JNPR @ 45 and sell the Jul 45s) versus the short put Jul45, then yes the put sale is marginally better. (oops pun not intended). The transactions are pretty much equivalent. When you compare a put that is OTM with a buy/write ATM, it is not equivalent since the potential gains and risks are each different. Just my 2 cents Later P.S. Speaking of scalping is anyone interested in selling the QCOM Aug 60 puts for bid .50 and ask .65?