Comments on: Selling Put Options: How It’s Done & How Easy It Can Be http://www.investmentu.com/IUEL/2009/July/selling-put-options.html Investment Advice and Investment Research with a Contrarian Point of View Mon, 15 Mar 2010 15:30:19 -0500 http://wordpress.org/?v=2.8.3 hourly 1 By: Five Commodities Are Poised For Big Moves… Are You Ready For Them? | Proinvests.com http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-26796 Five Commodities Are Poised For Big Moves… Are You Ready For Them? | Proinvests.com Tue, 13 Oct 2009 15:51:48 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-26796 [...] where selling put options comes in [...] [...] where selling put options comes in [...]

]]> By: Commodity Futures http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-17708 Commodity Futures Mon, 03 Aug 2009 15:59:53 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-17708 [...] And by selling put options, it allows us to collect the option premium, while having an opportunity to buy natural gas at unbelievably low historical levels. Check out this article for more information on how to sell put options. [...] [...] And by selling put options, it allows us to collect the option premium, while having an opportunity to buy natural gas at unbelievably low historical levels. Check out this article for more information on how to sell put options. [...]

]]> By: barbara http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15845 barbara Sun, 19 Jul 2009 18:58:26 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15845 If the stock goes lower than the price you sold it at you can always roll it over. I just did that with a put I had. I still am making money on the put. If the stock goes lower than the price you sold it at you can always roll it over. I just did that with a put I had. I still am making money on the put.

]]> By: chiranjeev chatry http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15480 chiranjeev chatry Wed, 15 Jul 2009 19:26:34 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15480 I have subscribed just for enjoying it but when i went through your article it influenced me . Previously i have confusion about options but really your article cleared my doubts.Thanks a lot.I will definitely wait for such articles. I have subscribed just for enjoying it but when i went through your article it influenced me . Previously i have confusion about options but really your article cleared my doubts.Thanks a lot.I will definitely wait for such articles.

]]> By: Frank H http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15463 Frank H Wed, 15 Jul 2009 16:31:32 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15463 Re: Lee Lowell’s “Put Options Strategy.” I agree writing put options can be a good strategy. Many years ago I experimented and learned quickly that most options expire worthless. At that time I was approved by a broker to write them which showed some profit. However, I believe with today’s rules and regulations it makes it very difficult for a person to get approved higher than writing covered call options. When banks started to get in to investments, I opened an investment account for fifty thousand with a bank that I have been a customer for many years. I also had about fifty thousand in savings in one form or another with them. I could not get approved any higher than writing covered calls with them. I have not pursued to find out what dollar amount would be needed in an account to qualify to write options but it must be more than the average small investor. Your program must be for millionaires. Frank Re: Lee Lowell’s “Put Options Strategy.”

I agree writing put options can be a good strategy. Many years ago I experimented and learned quickly that most options expire worthless. At that time I was approved by a broker to write them which showed some profit.

However, I believe with today’s rules and regulations it makes it very difficult for a person to get approved higher than writing covered call options.

When banks started to get in to investments, I opened an investment account for fifty thousand with a bank that I have been a customer for many years. I also had about fifty thousand in savings in one form or another with them. I could not get approved any higher than writing covered calls with them.

I have not pursued to find out what dollar amount would be needed in an account to qualify to write options but it must be more than the average small investor. Your program must be for millionaires.

Frank

]]> By: Steve http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15407 Steve Wed, 15 Jul 2009 00:40:53 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15407 <> The risk is a downturn that drags all boats lower, making you honor the contract as the stock drops lower than the strike price……think October, 2008, or November 2008, or March 6th, 2009. <> That is 1500 shares of some stock ($30/share put value=$45,000) versus a gain of $825 or 1500x$.55, that you are wagering will expire before the strike price (say $30) occurs. You now have to buy 1500 shares to cover the contract and tie up $45,000, that may be in a stock trying to set new yearly lows. In this example you risk $45,000 (all or part) to make $825. Those odds don’t look very good to me since a $.02 positive move in the share price is higher than the $825 “put” risk. <>
The risk is a downturn that drags all boats lower, making you honor the contract as the stock drops lower than the strike price……think October, 2008, or November 2008, or March 6th, 2009.

<>
That is 1500 shares of some stock ($30/share put value=$45,000) versus a gain of
$825 or 1500x$.55, that you are wagering will expire before the strike price (say $30) occurs. You now have to buy 1500 shares to cover the contract and tie up $45,000, that may be in a stock trying to set new yearly lows.
In this example you risk $45,000 (all or part) to make $825.

Those odds don’t look very good to me since a $.02 positive move in the share price is higher than the $825 “put” risk.

]]> By: How to sell put options | Stock Capitalist http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15399 How to sell put options | Stock Capitalist Tue, 14 Jul 2009 23:43:25 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15399 [...] ORIGNAL ARTICLE [...] [...] ORIGNAL ARTICLE [...]

]]> By: Joe Martinson http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15380 Joe Martinson Tue, 14 Jul 2009 18:08:21 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15380 In this article below it seems to indicate that you only have to buy the shares at expiration date. But with most calls the buy of the option can request assignment at any time. Isn’t that true with puts? Can't the buyer of the option force the seller to buy the shares at the strike price at any to upto the experation date? In this article below it seems to indicate that you only have to buy the shares at expiration date. But with most calls the buy of the option can request assignment at any time. Isn’t that true with puts? Can’t the buyer of the option force the seller to buy the shares at the strike price at any to upto the experation date?

]]> By: Simon http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15379 Simon Tue, 14 Jul 2009 17:43:58 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15379 Good Article! The only risk with this in a market like today is you could end up at expiration paying $15 for a stock that has gapped down to $8. Talk about a huge loss. I can see this working great in a flat or slightly bullish market where there is a natural pullback of the stock, but we are in a bear market rally that looks like it's about to turn over again. I personally don't want to own anything long in this environment. That said... maybe you could write a follow up article on buying back the put at a bit of a loss in case there is a large gap down in the stock before expiry, and how that works! Good Article! The only risk with this in a market like today is you could end up at expiration paying $15 for a stock that has gapped down to $8. Talk about a huge loss. I can see this working great in a flat or slightly bullish market where there is a natural pullback of the stock, but we are in a bear market rally that looks like it’s about to turn over again. I personally don’t want to own anything long in this environment. That said… maybe you could write a follow up article on buying back the put at a bit of a loss in case there is a large gap down in the stock before expiry, and how that works!

]]> By: Selling Put Options: How It’s Done & How Easy It Can Be | INVESTMENT NEWS&IDEAS http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15376 Selling Put Options: How It’s Done & How Easy It Can Be | INVESTMENT NEWS&IDEAS Tue, 14 Jul 2009 16:58:45 +0000 http://www.investmentu.com/IUEL/2009/July/selling-put-options.html#comment-15376 [...] some-more here: Selling Put Options: How It’s Done & How Easy It Can Be Share and [...] [...] some-more here: Selling Put Options: How It’s Done & How Easy It Can Be Share and [...]

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