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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: Honey_Bee who wrote (21973)	7/24/2011 12:00:50 AM
From: GROUND ZERO™	Respond to of 220517

You're very welcome... it takes time to digest, but it's really very simple once you realize what an option is, it's nothing more or less than an insurance premium someone buys to protect their stock... as the option writer, you're the insurance company, you take in the premium payment right away and it's your money the day you write it, the stock itself is not the focus in this strategy... but you must own the stock to protect yourself from a runaway market... you don't want to write a naked option, that would be dangerous... Ask questions as they come along... GZ