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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: Sam2482 who wrote (10853)5/20/1999 12:04:00 AM
From: phillip  Respond to of 14162
 
Hey Vicki,

RE: Naked puts

Usually, if I get stock put to me I will do a straddle i.e. sell a covered call one strike price up from the current price and sell one put(naked) one strike price down to lower my nut.

Also, I like to hedge my investments even more when I do naked put selling by being short the market using Diamonds (DIA) as my tool. That way if the market really tanks I will make $ on the Diamonds and probably own some good stocks at a lower price via the puts.