Hi Toofuzzy,
I used to write Puts on stocks, usually up-trending or range trading stocks.
If I got exercised I would take up the stock and immediately write a Call.
This isn't a bad strategy but you have to ensure the company is not a real lemon or else the written call will not protect your downside by very much.
I used to create synthetic positions by buying a call and put at same price them selling a call and put on either side several strikes away.
I didn't have to put much money up front with that method, the only thing that made it not worthwhile was the brokerage and the crappy market makers who try to rip you off.
I believe I an correct in saying that U.S. options contracts are for 100 shares?
From what it looks like you are trying to do is sell a deep in the money option.
You will find that it won't save you much money as the option is basically acting like the stock itself. It has a delta of 1 which means it moves in tandem with the stock.
You will sell the $15 Put for $9 but have to pay $9 more than the stock is currently worth, it probably has zero time value.
You could sell a call on the stock with the idea that it will expire worthless seeing as the trend is down, not sure what you would get for it though.
Regards
Neil
