Sell Puts

Discussion in 'Options' started by maninjapan, Nov 7, 2008.

  1. ok guys, a purely theoretical exercise here. If you had to choose a stock to sell puts what would it be?
     
  2. Worldcom, no wait, this one is a sure win: Enron, yeah i would go for Enron to sell puts...
     
  3. cfelicio

    cfelicio

    sell puts on a stock you want to own... if you don't want to own the stock, you need some kind of leverage if it goes wrong. what you can do is buy puts below the strike price of the ones you sold, limiting your risk. IE, if you write intc DEC 15 puts, you can buy DEC 10 puts. If intel goes to $0 (yeah, sure), your maximum loss is $5 per share.
     
  4. I like intel wrote a bunch of INTC 13 puts a while back, they will be expiring worthless to the buyers this november.

    But for the first time put writer keep it safe, SPY puts are good to write and the premiums are pretty good. you can write a few points OTM and collect.


    Lots of liquidity and volume with SPY.
     
  5. Airlines...CAL whenever its 15 or less...sell the calls over 20
     
  6. I would not recommend put selling on Airlines period.

    Or options writing period on airlines.


    That would be like underwriting fire insurance to kleptomaniacs.

    I would not recommend Naked Call writing period unless you really really have an understanding of risk and really know the underlying well.
     
  7. timbo

    timbo

    Why not? There's no difference between +/- equity or the option position.
     
  8. lindq

    lindq


    LOL. A few more of those famous last words heard before an account blows up.
     
  9. Theoretically, it would be a stock that is not going down in price.
     
  10. Would that be anything like passing a law that all arsonists must return what they steal?

    :)
     
    #10     Nov 9, 2008