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


To: edamo who wrote (120288)4/24/1999 7:00:00 PM
From: taxman  Read Replies (1) | Respond to of 176387
 
thanks for your response. i can sense you enthusiasm and sophistication for playing options.

i have some questions on your post.

"you [must] have capacity to accept assignment"

why not just buy the puts to close the position, hopefully at a profit?

"sell puts in that which you desire to own"

still a risk that stock can tank. do you just hang on and wait for it come back? in buying a call, i take a small loss and move on.

"i ... [sell] put leaps on days of high implied volatility"

are the put buyers always wrong? maybe the high implied volatility is signaling an even higher period of volatility going forward indicating a time to buy options. conversely low premiums may be signaling low volatility in the future and that may be signal to sell options.

'selling put leaps..gives you "interest free loan money"'

isn't put price adjusted to take this into account? it is my understanding that in an efficient market a put will sell at a price less than the call by the amount of interest necessary to hold the underlying stock, after adjustment for any dividends to be paid.

continued good luck since you seem to selling puts on many of stocks i am buying calls on. i plan on buying more dell leaps this week. saying that keeps this post on topic.

regards