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.

Pastimes : Ask da_cheif -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (5484)	9/28/2001 11:23:46 AM
From: Moominoid	Read Replies (1) \| Respond to of 8150

My puts expired yesterday so I had to buy the stock. My theory is I was happy to buy News Corporation on the day I sold the puts at that price ($15) and I wouldn't be selling the stock at this price so I'll keep the stock. Hope it increases and then maybe get rid of it using calls when it is closer to $15. If I sold $15 calls now I wouldn't get much for them (a few cents a share). Should I write $12.50 (October?) calls now? They would only be $0.65 so I would be guaranteed a loss if I am called. November is worth about $1. One contract here is 1000 shares. On the other hand maybe I'll just keep the News stock if the market keeps rallying. IMO this is the best stock to trade options on in Australia. There are options for every month (many stocks only have quarterly options - there are only about 50 stocks with options available) and premiums are large and strikes are every 50cents which is reasonable relative to the stock price. It tends to reflect US markets however more than what is happening here. I gave up on buying options...and started trying to sell them. This is my second attempt at writing naked puts. Not going so smoothly, but I figure I keep the premium whatever happens. David