Re: share price drops to what level?
in response to
by
posted on
Oct 10, 2012 11:53PM
Edit this title from the Fast Facts Section
Well, you can both sell puts and buy stock in whatever proportion seems right to you. Also, if the stock drifts up, you can buy back the puts at a profit and buy more stock. I really don't use puts for the purpose of building a long term position though, sometimes it can happen by chance, rather than design, though. I use the puts to generate cash flow during the interminable periods where the stock truly represents dead money. No one wants to miss a big announcement, but in this market, an announcement really has to be extraordinary to push a stock up materially and then keep it there.