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Strategies & Market Trends : Contrarian Investing -- Ignore unavailable to you. Want to Upgrade?

To: bluesongs who wrote (382)	9/28/2006 8:37:04 PM
From: pcyhuang	Read Replies (1) \| Respond to of 4080

To all potential option players: Since the risk and reward of options can be defined as: Long Stock = long call + long put (Note that the risk/reward on both sides of the equation are equal) The above equation can also be written as: short put = long stock + short call The advantage of selling put against cash over the buying of stock and selling a covered call is that: 1. You pay only ONE set of commissions in selling the put, and 2. You save on the margin required in selling the put than the amount required in doing a covered write. To see more examples of put writing, please visit the Full-Disclosure Trading Board for put writing on stocks mentioned on this Board. pcyhuang