Check out the Moron Index: http://finance.messages.yahoo.com/bbs?.mm=FN&action=l&board=7078727&tid=mo&sid=7078727&mid=419463 They're all Long stock/ short puts.
YES... I mean NO! Selling the puts 5:1 over spot. weak synthetic straddle, overwrite if you will. I'm going to hack into your blotter and I bet I'll find all these short MO puts in your account.
I know that sounding cryptic is a pastime of yours, but when <b>even mav</b> can't make out what you're trying to say, perhaps it's a bit overdone? That could mean: Short puts & MO underlying, at a ratio of 5 puts for every hundred shares of MO stock short. It could mean plenty of other things too.
Shorting the puts and the stock. Man, you guys got brains AND "stones". Stock goes down....Gain on the shorted stock Stock goes up....Gain on the shorted Puts I wish knew how you arrived at that ratio of 5:1. Then there's the dummy question of why not short some calls instead of the stock. I know, I know, hard work, study, discipline, years of experience. Brains and......ah well, you know.
Arnie, the vols are 130% on the 65p. I only sell otm curvature in these situations. The 5:1 ratio only provides a $3.00 upside-cushion on the shares. I'll need to increase the ratio or scrap it. Short calls are never a good hedge. The atm straddle at 500 doesn't look too shabby for a spec.