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DMO, it can happen if the stock is placed on the hard to borrow list. Fortunately, it happens only on rare occasions. That's just one reason to invest in a long call.

Daddy's Boy...you're 100% right. I made a mistake. Should have said a synthetic CALL spread. Sorry, I should have been more careful and typed what I intended to say. No question about it. What I displayed is a bearish (or neutral) spread. For sure, I didn't mean to indicate a bullish...

Lowvoltrader, the combination of (a) short100 shares, (b) short 1 Jun $55Put, and (c) long 1 Jun $60Call, is a synthetic Put Credit Spread. I like this because (1) it's easily adjusted, and (b) unlike a regular credit spread, I don't have to be concerned with the mechanics of early exercise...

Writing Covered Puts (short the stock; short a current month ATM put). Don't do this with dividend paying stocks.

In a bear market or a flat market, I love selling covered puts. (Short the stock and short an ATM Put). But, be careful when shorting stocks...stay away from dividend paying stocks because if you are short the stock on the day it goes ex-dividend, you have to pay the dividend.

Tums is right. The Optionetics pay site, Platinum, has this information available. I use it and it provides me with what I need in this regard. I don't know whether it is the most extensive or not. You might try a google search "options historical prices". It's just a hunch on my part...

Thank you, Commiebat. One of the main benefits for me using the covered put write is that I only have to watch the stock price, not the option. Only the stock can hurt me, not the option.

Spindro, I agree with you 100% with everything you said. I understand the synthetic equivalence. From a result standpoint, you are right. But, I've been shorting stock for many years...longer than I have been trading options, which is also a long time. Perhaps it's all in my head, but I'm...

Elliot, great point about the boxed long and short positions. It creates an erroneous interest charge. Schwab works great with me on those occasions when it does happen. Never ever need to make one phone call. Good point. Thanks.

For me the big advantage of writing covered puts over selling naked calls is that with the former I don't have to concern myself with getting assigned. This way, if assigned, I MAX out profitwise and I'm out of the trade. I love it. I have a business that keeps me occupied full time. My...

A lot of interesting responses. Thanks to everyone. I was pleasantly surprised to see that others also like this strategy. It is far and away my favorite strategy and also the one I have had the most success with. Yes, it is a synthetic naked call write. But, that's academic because while...

The first two postings I received (page 1) said, "NC". Other than North Carolina, what do these letters stand for? Also, I know that this is synthetic naked call write. But I like this better because I don't have to worry about being assigned. Actually, assignment on a covered put write is...

Shorting Stock and writing puts against it. What do you all think of the strategy?

Chloride (sodium or otherwise), we're all cynical sons of bitches, even the females. 4Q

I'm confused about the facts. If the call is about to expire out of the money, how is it worth $2.50 at expiration?

The W8BEN is used to certify to the IRS that the beneficial owner of the account is a non-US person not engaged in a US trade or business. The results for such non-US person (referred in the US tax code as a nonresident alien), are as follows: 1. Capital gains and losses from securities...

Options Coach, have you ever attended OASIS, and if so, what was your impression? Bob

Does the dividend amount have a direct effect on the price of a stock, and if so, how much and when?

asap, I understand the "synthetic collar" part of your statement, but am having a difficult time envisioning a "riskless" situation. If you have a few minutes, I would greatly appreciate an example. Thanks in advance. Bob

Don, thanks for the update. Much appreciated. Bob