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Message: Re: share price drops to what level?
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opc
Oct 10, 2012 01:38PM
1
opc
Oct 10, 2012 02:04PM

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.

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