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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (49856)	3/9/2006 11:58:57 AM
From: Live2Sail	Read Replies (1) \| Respond to of 306849

ATM means At The Money. He wants you to lock in some gains by selling some differently dated puts.

To: Think4Yourself who wrote (49856)	3/9/2006 12:31:15 PM
From: mishedlo	Respond to of 306849

ATM = At the money (near the current price) OTM = Out of the money OOTM = Way out of the money ITM = In the Money Not sure what month you have but lets say January 2007 You can collect some premium by selling some ATM or OTM puts for say June or July. On the OTM play the best case scenarion for you would be a decline to right about the strike you sold. Not only would your Deep ITM puts appreciate you would also collect all that time premium on the PUTs you wrote! Plus, if you have Jan 2007 and short June 2006 and that trade works out, you can do the same thing again in June, say selling August OTM puts. If ever the stock blows thru your sold puts by a mile, well you just collect that extra premium you sold as well as the profits on the leaps and congratulate yourself for an excellent series of plays and walk away. Good luck. Mish