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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Chas who wrote (104201)2/23/1999 12:30:00 PM
From: edamo  Read Replies (1) | Respond to of 176387
 
selling puts made easy...

basic rules, never violate..
1)have the capacity in cash or margin to accept the underlying issue if ever put to you

2)want to own the underlying

in an up market or issue, the selling of puts allows one to get cash for naught...case in point dell...many feel it will tank, so they buy insurance in the form of a put...the put seller is on the other side of the trade...he is the insurer...and much like an insurer if there is a "casualty loss", the seller due to time on his side can lay the loss off to another, by selling a future policy to one who again seeks downside protection...the buyer has a term policy, the seller has more latitude...buyer=cash out, seller=cash in....which side of the trade would you prefer..feel free to question, more than glad to explain..
good luck, ed a.