Quote from optioncoach:
Lol....
YOu see paysense... the point we are making is that if you are already short the put synthetically, why not short the put directly and choose a better position to begin with in most cases. Especially if you are doing buy writes.
Quote from atticus:
The only advantage to the buy-write is under some discrete gamma-trading scenario in which the trader is adjusting deltas. Of course, nobody would buy 50-deltas in the atm simply to get flat later.
A faint "poof" is heard in the distance as Gil's head explodes
Quote from paysense:
OK AKS is 35 Jun 35 call is 1 Jun 35 put is 1.
Sell it. I know what I'm gonna do with the CC trade to manage risk.
But the put trade?
Let say I use my SL method. Stock falls Monday morn to 34. Is this my target to buy back naked put. What will naked put price be? What percent loss is that to my portfolio?
Let this slow man think about it.
Quote from paysense:
OK AKS is 35 Jun 35 call is 1 Jun 35 put is 1.
Sell it. I know what I'm gonna do with the CC trade to manage risk.
But the put trade?
Let say I use my SL method. Stock falls Monday morn to 34. Is this my target to buy back naked put. What will naked put price be? What percent loss is that to my portfolio?
Let this slow man think about it.
Quote from optioncoach:
LOL.... Poof
What I meant by buy write is the people who do covered calls simply as an addition to an already full stock portfolio compared to those who go out and buy the stock for the sole purpose of establishing the buy write. I would not expect the stock holder to liquidate everything to switch to short puts.
you still sober?
Quote from paysense:
OK AKS is 35 Jun 35 call is 1 Jun 35 put is 1.
Sell it. I know what I'm gonna do with the CC trade to manage risk.
But the put trade?
Let say I use my SL method. Stock falls Monday morn to 34. Is this my target to buy back naked put. What will naked put price be? What percent loss is that to my portfolio?
Let this slow man think about it.