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Anyone using covered puts
#31
(11-30-2018, 12:42 PM)crimsonghost747 Wrote: And that brings us to our second point.. well we all have our opinions but if the plan is to hold long term then I would certainly consider that a loss.
For example stock X is trading at $28 today. You have sold a put option with a strike of $30. You will be paying $3000 for something that is currently worth $2800. So I don't see any other way than saying "I lost $200 minus the premium".

Yeah, but at the moment the put is sold, the stock was trading at, say, $31. When you sell the put, you're saying that you'd be comfortable buying at $30. So if you had instead not sold the put and just waited for your price, and bought outright at $30, you'd STILL ride the shares down from $30 to $28. In this case, you come out ahead for having sold the put, by the amount of the premium. Or am I not seeing it right?
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Messages In This Thread
Anyone using covered puts - by fenders53 - 08-31-2018, 07:42 AM
RE: Anyone using covered puts - by ChadR - 08-31-2018, 08:54 AM
RE: Anyone using covered puts - by Kerim - 08-31-2018, 09:03 AM
RE: Anyone using covered puts - by fenders53 - 08-31-2018, 09:39 AM
RE: Anyone using covered puts - by Kerim - 08-31-2018, 10:45 AM
RE: Anyone using covered puts - by fenders53 - 08-31-2018, 11:53 AM
RE: Anyone using covered puts - by NilesMike - 09-01-2018, 03:08 PM
RE: Anyone using covered puts - by fenders53 - 09-01-2018, 04:14 PM
RE: Anyone using covered puts - by NilesMike - 09-05-2018, 09:59 PM
RE: Anyone using covered puts - by fenders53 - 09-05-2018, 10:45 PM
RE: Anyone using covered puts - by NilesMike - 09-06-2018, 06:09 AM
RE: Anyone using covered puts - by fenders53 - 09-06-2018, 11:58 AM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 09:40 AM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 01:41 PM
RE: Anyone using covered puts - by NilesMike - 09-07-2018, 06:15 PM
RE: Anyone using covered puts - by fenders53 - 09-07-2018, 08:01 PM
RE: Anyone using covered puts - by fenders53 - 09-12-2018, 10:49 AM
RE: Anyone using covered puts - by fenders53 - 09-12-2018, 01:43 PM
RE: Anyone using covered puts - by NilesMike - 09-12-2018, 06:15 PM
RE: Anyone using covered puts - by fenders53 - 09-13-2018, 09:24 AM
RE: Anyone using covered puts - by fenders53 - 09-13-2018, 11:48 AM
RE: Anyone using covered puts - by NilesMike - 09-13-2018, 08:20 PM
RE: Anyone using covered puts - by fenders53 - 09-14-2018, 07:33 AM
RE: Anyone using covered puts - by fenders53 - 09-20-2018, 03:43 PM
RE: Anyone using covered puts - by fenders53 - 11-01-2018, 07:39 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 11:26 AM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 09:29 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 01:07 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 04:48 PM
RE: Anyone using covered puts - by fenders53 - 12-01-2018, 09:18 AM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 01:29 PM
RE: Anyone using covered puts - by ChadR - 11-30-2018, 04:01 PM
RE: Anyone using covered puts - by Kerim - 11-30-2018, 04:41 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 05:07 PM
RE: Anyone using covered puts - by fenders53 - 11-30-2018, 05:08 PM
RE: Anyone using covered puts - by Kerim - 12-01-2018, 01:29 PM
RE: Anyone using covered puts - by fenders53 - 12-01-2018, 05:50 PM
RE: Anyone using covered puts - by fenders53 - 12-02-2018, 07:09 AM
RE: Anyone using covered puts - by fenders53 - 12-02-2018, 08:57 PM
RE: Anyone using covered puts - by fenders53 - 12-03-2018, 08:32 AM
RE: Anyone using covered puts - by fenders53 - 12-03-2018, 11:48 AM
RE: Anyone using covered puts - by Kerim - 12-03-2018, 10:59 AM
RE: Anyone using covered puts - by NilesMike - 12-04-2018, 11:06 PM
RE: Anyone using covered puts - by fenders53 - 12-05-2018, 01:07 AM
RE: Anyone using covered puts - by Kerim - 12-07-2018, 03:25 PM
RE: Anyone using covered puts - by ChadR - 12-07-2018, 03:32 PM
RE: Anyone using covered puts - by fenders53 - 12-07-2018, 05:17 PM
RE: Anyone using covered puts - by fenders53 - 12-26-2018, 06:09 PM
RE: Anyone using covered puts - by fenders53 - 01-01-2019, 11:47 AM
RE: Anyone using covered puts - by Kerim - 01-01-2019, 12:16 PM
RE: Anyone using covered puts - by fenders53 - 01-01-2019, 01:04 PM
RE: Anyone using covered puts - by fenders53 - 02-17-2019, 09:18 AM
RE: Anyone using covered puts - by NilesMike - 02-17-2019, 09:25 AM
RE: Anyone using covered puts - by fenders53 - 02-17-2019, 08:09 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:17 AM
RE: Anyone using covered puts - by Kerim - 02-18-2019, 05:27 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:09 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:10 PM
RE: Anyone using covered puts - by fenders53 - 02-19-2019, 08:14 AM
RE: Anyone using covered puts - by NilesMike - 02-18-2019, 06:03 PM
RE: Anyone using covered puts - by fenders53 - 02-18-2019, 07:05 PM



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