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


To: GROUND ZERO™ who wrote (22079)7/26/2011 1:04:31 AM
From: KevinKT  Read Replies (1) | Respond to of 220486
 
In addition to writing calls, do you also write puts?
Put premium are the same as calls. Writing covered calls involve buy the stocks first, while writing naked puts OTM does not need to put up money first, however one does need to be careful as if market turns down, there will be big losses. Just like the CDO's, derivatives etc that caught the banks in 2007-2008.