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Re: ls7550 post# 34009

Tuesday, 03/01/2011 5:44:22 PM

Tuesday, March 01, 2011 5:44:22 PM

Post# of 47151
Hi Clive

>>>Next AIM sell price 105, current price below that, write (sell) 105 strike price PUT options and keep the premium no matter if the sell price is hit or not. <<<<<


I think you mean Next AIM "BUY" price 105, current price "ABOVE" that .......... no matter if the "BUY" price is hit or not. Unless you meant CALLS in which case it would have made sense.

YEAH i get confused with options sometimes also! >grin<

That is a good idea though. Sell puts at the price you want to buy. If it gets put to you fine and if not you keep the premium. Only problem is you can miss a bunch of trades and tie up the capital in cash just in case the stock is put to you. Meanwhile the stock can bounce up and down till the option expires. I sell puts and calls (not a lot) at least 6 months to a year out so I am not spending a fortune percentage wise in trading costs.

Regarding your initial point. No I never switched over to % PC for trade size from % Stock value. I never quite understood the difference or what the unintended consequences might be.

Toofuzzy

Take the road less traveled. It will make all the difference.

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