Looking for guidance

D

Daring

There's an instrument Ive been following and I would be a buyer at certain different prices (lower).

Is writing the strike in puts a good idea ?

I dont know if price will hit my areas or not, but would like to know what alternatives I have via options.

Thank you for your help, options never been my forte.
 
Quote from Daring:

There's an instrument Ive been following and I would be a buyer at certain different prices (lower).

Is writing the strike in puts a good idea ?

I dont know if price will hit my areas or not, but would like to know what alternatives I have via options.

Thank you for your help, options never been my forte.
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With the limited details you provided I would say it's a bad idea. If it hits your strike chances are that it will go lower and eat up the premium you collected. Also keep in mind that selling puts = covered calls.

:)
 
Quote from FXforex:

With the limited details you provided I would say it's a bad idea. If it hits your strike chances are that it will go lower and eat up the premium you collected. Also keep in mind that selling puts = covered calls.

:)
More...

I think I get where the OP is coming from, he does not want to miss the ride, whether it retraces to desired price or not.
 
I have sold puts and made limited gains.. but missed out on the big pops.

ie. FCX last week's earning was at 34.8 i knew it was going to go past 35 FOR SURE due to all of the rates in copper and gold.

I sold the weekly put for 35 for $110. the next day the stock was at 36.5.

NOW its better to buy call (in my opinion)

ie if my thinking on FCX was tht it will go to 35.5 (which is what i had thought at the time.. which was of course pretty dumb as 1% gain on earning is shit.) i could have still bought lets say 36 call for about (assumption) 12 bucks. AND next day tht would have been way above 100.


also to answer your question about your stock might not reaching ur exc price- as long the stock's trajectory is correct, u should be able to make SOME money (jst keep in mind TVM). i have gotten screwed there too.

hope tht helps.
 
Quote from regardspratik:

I have sold puts and made limited gains.. but missed out on the big pops.

ie. FCX last week's earning was at 34.8 i knew it was going to go past 35 FOR SURE due to all of the rates in copper and gold.

I sold the weekly put for 35 for $110. the next day the stock was at 36.5.

NOW its better to buy call (in my opinion)

ie if my thinking on FCX was tht it will go to 35.5 (which is what i had thought at the time.. which was of course pretty dumb as 1% gain on earning is shit.) i could have still bought lets say 36 call for about (assumption) 12 bucks. AND next day tht would have been way above 100.


also to answer your question about your stock might not reaching ur exc price- as long the stock's trajectory is correct, u should be able to make SOME money (jst keep in mind TVM). i have gotten screwed there too.

hope tht helps.
More...

Don't forget consolidation = premium burning.
 
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