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

To: diegosan who wrote (2238)	2/1/2021 3:21:40 PM
From: robert b furman	Respond to of 2591

Hi Diego, Pardon my delayed response. Drove to my Houston home and trying to get caught up from several days in meetings and on the road. Not to mention getting my older desk top up to speed. Today's trading volume is now 20. The open interest is 3201. The 26's have bigger open interest at 6079. I have sold some 27's and then some 26's hoping to get the 27's and have the 26's help me pay for them as they expire to 00.00. Recent low is 26.08, so they seem to be safe as far as expiring to zero. (famous last words <smile>. Either way good yield in dividend and that is all I ask for with T, but think it is overly beat up. They're network is excellent and adding customers with good deals and advertising IMO. I've always thought the MM does most of the option selling. When you see so many contracts if the open interest, it seems he tries to make them expire to 00.00. He keeps the money tat he sold the contracts on. I'm not a big student on the greeks. All I know is I trust in theta - time decay. If the stock gets assigned, I'm always satisfied to buy the shares low enough to have a good dividend yield. It takes the fear out of the market for me. Either a good deal on the purchase or a good returrn on using my cash as collateral for the premium. If I don't feel that way, I don't put on the trade. Hope that helps and Thanks for your kind words. Bob

To: diegosan who wrote (2238)	2/2/2021 10:03:43 AM
From: THornsby	Read Replies (1) \| Respond to of 2591

Diego AFAIC, for a retail investor selling puts for income or for acquiring the stock at a better price, implied volatility is only relevant for judging if it's a better time to sell (higher premium). For example, if you have something on your radar, selling just before an earnings announcement will be more rewarding since the premium will temporarily be fatter. Open Interest should not be a consideration if you are selling the puts to acquire at a lower price and the bid/ask spread is narrow. Premium price and cost of acquisition is your consideration. If you are trading the option then liquidity would be more of a concern.