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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (55153)	4/8/1999 12:31:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Howard, I call this a double barrel trade. You can be right twice, wrong twice or one and one. <g> I do sell puts (long stock, short calls, which are synthetic short puts and hold cash) in my IRA income account, but I think it is a weak strategy most of the time. In general, if you like a stock enough to sell a put, then you should buy the stock or buy an in the money call. But that does not fulfill the needs of an income investor. Since IRAs and 401Ks have limited options for income investing, I think that short puts have a place in them. Then buying the calls with the premie compounds your speculation. In general, I don't see a problem but you have to realize that you are nowhere near as low risk as a 90/10 speculator when you do this. And your base money, in Barrick, could get wacked.