Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: TheNoBoB who wrote (5789)	9/3/2013 10:14:12 AM
From: Delfino R Zavala	Read Replies (2) \| Respond to of 5891

NoBob I tend to stick to selling naked puts. I have only played with selling naked calls a couple of times and don't remember getting hurt. I am sure you have done this much longer. Can you comment on the risk of a company getting bought out at a much higher price than your naked call? I guess I am thinking that you need to be aware that the reason a stock is overbought is not the potential buyout. Does my thinking make sense? I have often seen stocks hit around 90 on the RSI line and bumping up against the upper BBs and I get the gut feeling its ripe for a naked call. Then I tell myself "But what if it keeps going up??". I guess the old "no guts no glory" saying real. Thanks Delfino