Covered Call Question

Discussion in 'Options' started by oldtime, Jul 13, 2011.

  1. Did you consider selling an OTM leaps Put? Good premium, enough price space, and time on your side. I would NOT sell at the bid, but maybe at the ask minus 0.01, if not at the ask.
     
    #11     Jul 17, 2011
  2. spindr0

    spindr0

    HUH?
     
    #12     Jul 17, 2011
  3. lol 97.50 and 102.50 options. Not a lot of 2.50 wide strikes at the price. Even so, why are you recommending the 97.5/102.5 put spread?
     
    #13     Jul 17, 2011
  4. well, thanks for all the replies. I've been thinking it over. I have to give up something. So I'm willing to give up the fantastic profits on a big move up in exchange for protection from the fantastic losses on a big move down.

    So that means making money in the middle, and that involves selling premium. And most likely legging in.

    bout everytime I think I got it figured out I see something I have missed
     
    #14     Jul 17, 2011
  5. :) Great conclusion! No free money, just a different risk profile.
     
    #15     Jul 17, 2011