SI
SI
discoversearch

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


To: Ibexx who wrote (113835)4/1/1999 11:54:00 AM
From: edamo  Read Replies (1) | Respond to of 176387
 
ibexx...temporal what???

put sellers can defer their losses until they are a gain...be it with the same issue/strike,further expiration....or new issue/strike/expiration......as long as you can cover the premium increase...and not add additonal exposure from the cumulative strike...temporal is relative on the sell side of an options contract versus the buy side...the writer can extend the contract with ease..

the short seller has much more risk...as theoretically they face infinite loss...the put seller has built in cap to any loss..more margin calls to shorts...very rare to put sellers...

the point i make is anyone can short(high risk)...fewer can sell puts(conservative bullish strategy no different than a long)

hope it clarifies and helps your understanding of put selling...cheers ed a.