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 : Short-termSelling Puts (Covered Calls by another name) -- Ignore unavailable to you. Want to Upgrade?

To: Rocky9 who wrote (20)2/14/2006 3:53:08 PM
From: KCMuu  Respond to of 66
 
Thanks for the feedback

That backs up my feeling on this. It does seem that you can 'throttle' your risk level to a degree. Strikes below the stock price provide lower upside but some protection. Strikes ATM a balance. Strikes above the stock price is closer to the risk/reward of outright owning the stock.

Yep, if everything tanks, I go down with it - but by ~ 7% less than just owning the stocks. So far, this is a reasonable trade-off for me.

Diversify vs a sector? Well, I think it was Mark Twain who said 'Put all your eggs in one basket, then watch that basket *very* carefully'. There might be some merit in that.

Good luck - I look forward to following your trades.

-KCMuu



To: Rocky9 who wrote (20)2/15/2006 1:01:33 PM
From: Biomaven  Read Replies (3) | Respond to of 66
 
What do you think of RMBS as a prospect for your strategy here? Sky-high IV's for reasons that are not clear to me. But I would guess based on the fundamentals (which I barely understand) that a big surprise move is more likely on the upside that the downside, suggesting that selling puts might be a smart move.

Peter


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News