News Focus
News Focus
Followers 18
Posts 4544
Boards Moderated 0
Alias Born 11/20/2001

Re: 3xBuBu post# 5082

Tuesday, 07/31/2007 10:51:59 PM

Tuesday, July 31, 2007 10:51:59 PM

Post# of 72997
wonderbuy: I want to go long the QQQQ tomorrow. To do so I would prefer not to purchase Calls and endure the time decay required for the QQQQ to exceed the previous highs. I intend to sell naked puts but am concerned about the possibility that the QQQQ's price will fluctuate below the put's strike price during this position's lifetime. If this should happen it's always possible that I will be assigned before expiration. Therefore am I correct in understanding that I need to avoid selling deep in the money puts and sell slightly ITM, ATM or OTM puts to minimize the possibility of assignment?

"I do not have to worry about what to say or what to do, because He Who sent me will direct me" http://www.acim.org/
My wife the miracle worker's new website: http://www.nmtcanada.com
NMT: http://www.neuromodulationtechnique.com/

Discover What Traders Are Watching

Explore small cap ideas before they hit the headlines.

Join Today