Search results

That is true. That is why I personally prefer to mostly sell puts on stocks that I would like to own at a price below FMV.

forex-forex: A more conservative approach would have been to purchase some deep in the money leaps on SBUX and sold some short term (i.e. June 30) call options against it to bring your cost basis down thereby further reducing your risk until SBUX does recover. Hopefully you have now learned...

Zdreg, depends on the underlying. In this case I sold a few June 30/32.50 bear call spreads on SBUX, and is why I was initially attracted to this board when I saw the title. Overall I am bullish on SBUX and believe that it will recover (slowly). Until that time I will continue to sell call/put...

This is why I love selling deep OTM options to dumb money.