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


To: Michael Bakunin who wrote (117591)4/14/1999 6:54:00 PM
From: BGR  Respond to of 176387
 
Michael,

True, not risk-free. But with lower risk. And, given the huge volatility in DELL (mostly a result of it's upward momentum, the downward premium is substantial.

Or at least has been. I'm still bullish and I understand that you are still bearish. :-)

However, if the stock declines and stays down, repeated put premium selling can very well result in a risk free situation. You do not need a bull market for that. A flat market is just ideal for the put (and call) seller. Kind of like insuring the safest driver in town.

If the stock continues to plummet, as in your cherry picked example, the situation is no longer risk free.

-BGR.