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Re: dmceng post# 589557

Thursday, 09/26/2019 9:26:14 PM

Thursday, September 26, 2019 9:26:14 PM

Post# of 730710
dmceng.....go to google and type in put and call option strategies....there are many sites where they explain the techniques in more succinct details than I can...but, in brief, if you are selling puts, you need to get at least 30% annualized return to assume the risk of assignment...if you are selling covered calls, about 20% annualized premium would be fine..when looking at options tables, scan the various strike prices for the highest open option positions..MM use put and call options to hedge their portfolios and bring in capital...when you see a large open position on a call, and also a large open position on a put, at the same strike price, the MM will sell calls to investors hoping to make a quick buck, and take in their premium to buy the call... at the same time , the MM will buy puts at the same strike price...what this means is that they have no intention to deliver the stock or the money at that price.. they will work the price lower as the option expiration is near, and below the exercise price, so they don't have to pay... at the same time the stock price is going down, the puts gain in value, and they slam the stock to investors who have sold the put... selling a put just means that you will take the stock at a specified price.. if it is below the strike price on options expiration, they will slam it to you...but there is more... so read on google.. Lodas
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