SI
SI
discoversearch

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 : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?


To: AnnaInVA who wrote (2679)10/14/2001 1:10:02 PM
From: Uncle Frank  Read Replies (1) | Respond to of 5205
 
>> since the margin requirement for writing the naked put is really not that significant, this is definitely the best way to go.

It may very well be, but being short puts can be very uncomfortable if the stock happens to take a dramatic dive, something we've witnessed all too often over the past 19 months. In fact, though the reward profile for writing puts and writing calls is very similar, the risk with shorting puts is so much larger that Roth defines the appropriate underlying assumption as "bullish to very bullish".

imho (and Roth's),
duf