Re: Options
in response to
by
posted on
Mar 25, 2022 03:40AM
Selling puts requires, at least in the case of my broker, to have a cash position in place to “cover” the put position (which is interesting, because the broker does not mind if I go on margin while buying shares). So with “cash on hand” it is possible to sell puts, but once you position is fully loaded, one has to start selling calls.
To some extent, I would say, that selling calls is more exiting. Lets say, I have bought 100 shares of LAC today at $34 and I am ok to collect 100% gain on this trade in November. So I sell $60 Nov LAC call for $2.50 and just wait (assuming there is a liquidity). If its gets there fine, if not, well I have just made another “long term” investment :-) and in the process made 7% gross on the investment, which is better than keep the money in the bank, assuming that LAC in the meantime has not visite $24, that of course would make it less exiting.