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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Steve Lachance who wrote (14144)8/20/1998 10:12:00 AM
From: Jan Crawley  Read Replies (1) | Respond to of 164684
 
Selling put incurs obligations to buy; which means you receive the premium and promise to buy the stock @120 on Sept. option expiry date.

It's not a bad idea if you have adequate resource to "cover" the short share while you wait.

However, if Amzn drops to 100 in a few weeks(before Sept. expiry date); then you cannot cover your current short shares even if you would like to; cause you will have to buy shares at $120....