Replies to post #5804 on Rite Aid Corp (fka RADCQ)

[farooq]

Writing puts are better strategy if you are good in your TA and disciplined.
Lets Take your example that stock has high chance of closing above 2.50 on September 29th right now calls are Bid 13 X ask 15 where as puts are last sold for 33 Cents for same strike B is 27 A is 33
if you sell 10 you have premium of 330 you protect your self wit 2 $ at 6 Cents so you gave up 60$ 270 is in your pocket, stock cross 2.50 you buy puts back and premium you earned you can buy calls.
you decide which will be better.

[Mustang66]

Poor Trader--
So you would still have to buy the 100 shares of the 1 option at the strike price + the premium....correct?