Replies to post #604072 on Mr Cooper Group Inc (COOP)

[lodas]

Monica....when you sell a put, you are taking the risk of assignment at the strike price... for this transaction, you should get at least a minimum of 30 % to take that risk.... thats why insurance companies always charge a higher premium for a Lambo versus a toyota... the damages to repair on a Lambo is higher...you sell calls on your stock when the stock moves up, because the premiums are higher, and also to hedge your long position.... you sell puts when the stock is low, because the holder of the stock will give you more premium to take the risk... he really wants to unload his long position at a specified price, so he must pay for this...... only sell puts if you think the price will be higher at option expiration, since they cannot be assigned to you if the closing price is above the strike price...now, here is what I do....I will sell the calls when the stock moves up and get the premium... if , I am wrong on the call side, and they take my stock by assignment at option expiration, I will then sell a put , and bring in premium and try to have the stock assigned to me... so , I get paid both ways, on the call, and on the put...while it is true, I will lose the stock price rise, nothing says that I cannot buy back in...IF I REALLY CANNOT LIVE WITHOUT THIS STOCK....so, in essence, one does not have to own a stock to make money, one can sell puts in perpetuity and make money, and never get assignment... does Google and Amazon strike a bell?... had you sold puts on these two companies the last 10 years, you would have collected thousands of dollars in premiums, and never be put the stock...sort of like your car insurance carrier... you pay the insurance for 20 years, never get in an accident... they never return you premium, do they?...get hep on options, my broker lived in La Jolla california by just selling and buying put and call options.. help?.... Lodas