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...
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...
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...
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...
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....
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....
Spindro, I agree with you 100% with everything you said. I understand the synthetic equivalence. From a result standpoint, you are right....
Elliot, great point about the boxed long and short positions. It creates an erroneous interest charge. Schwab works great with me on those...
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...
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...
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...
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...
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...
Don, thanks for the update. Much appreciated. Bob
Separate names with a comma.