Comments on: The Married Put Option Strategy: The Smartest Way to Protect Against Downside http://www.investmentu.com/2009/November/the-married-put-option-strategy.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 09 Feb 2012 16:06:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Options Basics: A review of the Married Put Strategy | Financial Aggregator http://www.investmentu.com/2009/November/the-married-put-option-strategy.html#comment-29340 Options Basics: A review of the Married Put Strategy | Financial Aggregator Thu, 12 Nov 2009 23:31:38 +0000 http://www.investmentu.com/IUEL/2009/November/the-married-put-option-strategy.html#comment-29340 [...] here to read more. Similar [...] [...] here to read more. Similar [...]

]]> By: Sal Piccolo http://www.investmentu.com/2009/November/the-married-put-option-strategy.html#comment-28807 Sal Piccolo Wed, 04 Nov 2009 14:40:21 +0000 http://www.investmentu.com/IUEL/2009/November/the-married-put-option-strategy.html#comment-28807 The married put option is very good advice. However, did you mention what happens if the stock stays basically unchanged? The married put option is very good advice.
However, did you mention what happens if the stock
stays basically unchanged?

]]> By: Earl bailey http://www.investmentu.com/2009/November/the-married-put-option-strategy.html#comment-28793 Earl bailey Wed, 04 Nov 2009 01:43:10 +0000 http://www.investmentu.com/IUEL/2009/November/the-married-put-option-strategy.html#comment-28793 I don't know ... even though I have a Ph.D., I have trouble understanding the 'puts' and the opposite moves. And now, you give us a 'married put'!!! Of course, maybe my age is against me. Thanks for all the info. I don’t know … even though I have a Ph.D., I have trouble understanding the ‘puts’ and the opposite moves. And now, you give us a ‘married put’!!! Of course, maybe my age is against me. Thanks for all the info.

]]> By: Dom Brunone http://www.investmentu.com/2009/November/the-married-put-option-strategy.html#comment-28770 Dom Brunone Tue, 03 Nov 2009 18:20:00 +0000 http://www.investmentu.com/IUEL/2009/November/the-married-put-option-strategy.html#comment-28770 Karim - Buying put options on your stock may be a hedge, but if you bought that INTC in March, you still have 5 months to go to get that 15% Long Term Capital Gain treatment. BUT the IRS says that if you buy a PUT option on a stock on which you have NOT achieved LTCG status, you RESET the IRS clock to zero! Much better is to buy a Put option on the Semiconductor Index, SMH, or the Technology Index, XLK, which does not affect your LTCG status. Karim – Buying put options on your stock may be a hedge, but if you bought that INTC in March, you still have 5 months to go to get that 15% Long Term Capital Gain treatment. BUT the IRS says that if you buy a PUT option on a stock on which you have NOT achieved LTCG status, you RESET the IRS clock to zero!

Much better is to buy a Put option on the Semiconductor Index, SMH, or the Technology Index, XLK, which does not affect your LTCG status.

]]> By: Investment U http://www.investmentu.com/2009/November/the-married-put-option-strategy.html#comment-28774 Investment U Tue, 03 Nov 2009 18:18:15 +0000 http://www.investmentu.com/IUEL/2009/November/the-married-put-option-strategy.html#comment-28774 Bob, Yes, what you have said is a valid strategy, but may be too complex for many people. In this market, direction is the issue. By employing a married put, you not only protect your downside but you allow for unlimited upside as well. Karim's objective at <em>Investment U</em> is to show people all types of strategies that may fit their needs. Thanks for your response. Investment U Bob,

Yes, what you have said is a valid strategy, but may be too complex for many people. In this market, direction is the issue. By employing a married put, you not only protect your downside but you allow for unlimited upside as well. Karim’s objective at Investment U is to show people all types of strategies that may fit their needs. Thanks for your response.

Investment U

]]> By: Bob Tanner http://www.investmentu.com/2009/November/the-married-put-option-strategy.html#comment-28766 Bob Tanner Tue, 03 Nov 2009 17:45:33 +0000 http://www.investmentu.com/IUEL/2009/November/the-married-put-option-strategy.html#comment-28766 By buying the put you are going to give up $2 of your profit for sure. Why not do what you recommended a while ago and sell an in the money call - like the Intel April 17 call? You get the premium of $2.48. If the stock goes up you will lose the stock for $17, which is then a $1.52 loss - less than a $1.90 loss. If the stock drops below 17, you keep the stock but get the $2.48 and can sell the stock so it is likely that you could get about the same as if you sold the stock now at $19. Better yet, if you really believe INTC will drop $2, sell the stock and buy a put with $1.90 of the proceeds. You keep your INTC profit and can probably sell the put for more than $1.90 prior to expiration. By buying the put you are going to give up $2 of your profit for sure. Why not do what you recommended a while ago and sell an in the money call – like the Intel April 17 call? You get the premium of $2.48. If the stock goes up you will lose the stock for $17, which is then a $1.52 loss – less than a $1.90 loss. If the stock drops below 17, you keep the stock but get the $2.48 and can sell the stock so it is likely that you could get about the same as if you sold the stock now at $19. Better yet, if you really believe INTC will drop $2, sell the stock and buy a put with $1.90 of the proceeds. You keep your INTC profit and can probably sell the put for more than $1.90 prior to expiration.

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