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Trading Puts and Calls

Posted on 2/26/14 at 12:42 pm
Posted by Hoyt
Alabama: The Beautiful
Member since Aug 2011
5396 posts
Posted on 2/26/14 at 12:42 pm
Any of you guys have any luck writing options on one particular stock (that you follow closely)? I own some shares in a company and I am fairly confident of the company's stock pricing changes. I'm considering on giving this a whirl as I have been wanting to for quite a while.
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89619 posts
Posted on 2/26/14 at 12:48 pm to
I wrote puts on 2 stocks I was willing to hold long. I made a little bit of money on one and broke even on the other - but I strictly wrote puts, near the money, pure long position stuff (i.e., I was okay taking the stock if the put was exercised).

You will want to learn how to do straddles to protect you from unexpected fluctuations, though, if you want to really get into it - you can still make money if you're right on you price points, but straddles act as an insurance policy.
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