Covered Put Writing

Notwithstanding the sidebar semantic discussion, my point in starting this thread was to point out that this strategy is consistently profitable, particularly in these terrible financial times.

4Q
 
The same thing applies to selling covered calls. You can have a lot of in dividual successes picking up change in front of the steamroller. When the day comes, and statistically it will come when you get rolled you end up giving a lot more back. Also if you're doing this on multiple underlyings at the sametime when the market moves more than one deals going to blow up in your face at once.
 
The same thing applies to selling covered calls. You can have a lot of in dividual successes picking up change in front of the steamroller.
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LOL. Bearish strategies perform consistently well in a bear market and vicey versy. BTW, where's Comrade Battie these days? Did he get deported to Canuckia? Oops, already did that...
 
but if the stock goes up. how does being short a put help? The premium would drop and you still have stock out there that you borrowed.
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Noob, it's nothing exotic. It's the mirror image of a covered call except that your outlook is neutal to bearish instead of neutral to bullish. Same risk and reward spectrum, just in opposite directions.
 
Not sure why you not just do a simple credit spread (i.e. bear call spread) and you no need to tie up your capital with margin and you stll achieve the same outcome, neutral to bearish expectation...:confused:
 
Quote from exQQQQseme:

...this strategy is consistently profitable, particularly in these terrible financial times.

4Q
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Gosh, seems like I've heard those words before.
 
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