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Spin, I am working under the assumption that it wouldn't be legal for a company to buy puts on themselves (or at least would look very suspicious), therefore, buying puts on very similar companies would be their hedge. I also don't know about the legalities involved. I am even assuming it...

That's where I don't completely agree. Even if times were good in the airline industry and say oil was at $40, every airline knows they might quickly go under if oil spiked to $400/barrel - they hedge that risk knowing it is costing them some money because they can't take the risk of literally...

Spin, thanks for the reply. Of course, in retrospect, when the market was OK, there was a good use for puts - with the dow at 14,000, or even when it went to say 10,000, they could have and would have worked. My point again would not be that they need to be heavily involved in options...

Yes, shareholders are able to do what they want with dividends, but we can bet most either just keep the money or reinvest in the company. I am not saying the company would have to get rid of dividends either - they could pay 5% and still spend 5% on puts for example. The way business...

Do you really think so? I mean people have lost huge sums of money with wimpy dividends in the last year holding stock like WFC for example. If WFC had instead put some money into puts on C, BAC, JPM, etc and SPY, it's quite possible they would be doing very, very good right now and the...

UMU, If you have a 50% shot of either losing the entire $100 or gaining $100 and the investment is $100, why would someone insure that for a small price? Think about it - if every "bet" would be insured for just $25, you would make a small fortune quickly by doing the bet over and over...

I was just wondering about this and thinking if the market gets OK again and the economy is going OK and the DOW is 12,000, etc., will (and/or in your opinion - should) companies consider buying Puts on the overall market and/or competitors/other businesses in the same industry? If you think...

If the current leaders ever listen to Steve Forbes and at least temporarily stop the mark-to-market madness. There is a chance something could happen Mar 12th or so. Check the following: http://www.cnbc.com/id/29549920 My opinion: 1. I don't trust that they will take any action...

GE was as high as $30 as recently as last August or so, plus was in that range well before that time as well. I'm sure many people went long GE calls 35 strike LEAPS figuring GE would do ok. Looks like it hasn't gone very good so far lol. At least anyone holding still has 9 months or so to...

B Rowshan, Unfortunately, I don't have enough spending power right now in my options account to make a decent size position unless I close something else, but I have other stuff open that I don't want to close. If anything, I would be short, maybe 140-130 Bear Put Spreads, maybe 150-160...

OK, I'll make my prediction - earnings may or may not be OK - stock will fall $10 or more IMO. Worries about next Qtr, etc and the fact that AZO is priced at or above before all the problems will cause this. Again just IMO - I did a long time ago feel DECK was heading way below $100 and that...

Try driving down Del Amo Ave anywhere from 2:30-6:00 and you will think the unemployment rate here is about .1%. I have been driving that road for quite a few years now and it has NEVER been worse. JJacksET4

One more thing prc117f - you could certainly consider just selling less qty covered calls (i.e. 12). That way, you get some money in (and you can just keep it in your account, or you could buy more GE shares with it, etc.), and if GE explodes to the upside, you would still participate with 1200...

I like this one - if they discover that, I want first dibs on it to go back to 1955 and buy some GE stock and baseball cards (1954 Topps Wax Boxes!) and then sell in 2006 lol. Not quite sure I understand - if you sell your GE shares as a covered call being exercied and then buy GE back, that...

Of course not Spin! Just trying to point out that loot from covered calls is good for anything lol. :)

Cutten, You cut to the chase and made a great point there. I think it is often overlooked by options traders. For example, sometimes I hear people say things like "If I buy an ATM call and the stock soars, the IV will fall, and I could lose, right?". IV is important of course, but...

Subdude, I don't want to get into the details of this position, because it is quite complicated as far as if it does the OP any good or not, but I have to side with Spin on the margin issues. He sells covered calls and gets money - that money is his to keep or to withdraw and spend on booze for...

Were his put sales set for 100 years from now? I don't think so. I think it's obvious that short term volatility needs to be and is priced into options and that's what is making the put sales show a high liability against him. I really don't follow Buffet/Berkshire that much, but I would...

Strange. At first glance, those options appear to be standard, then I notice the June options are basically priced at parity - they are around $600 each and then all of the sudden, the Sept puts are around $1000, with the calls being $750 range. I do remember there being some stocks...

This is the smartest comment on EliteTrader. Obama is an affirmative action President. People voted for him to "feel good" or because "he's cool". Imagine going to a job interview for a senior level computer programmer position and they ask what your skills are and specifically what you...