Post #8446 by Mark on the Retirement Investing board

Personal Finance Topics / Retirement Investing ❤

Unthreaded | Threaded | Whole Thread (16)

Post New | Post Reply | Report Post | Recommend It!

No. of Recommendations: 1

Instead of buying puts ... and have the time value losses associated with buying options, why not sell calls ... and have the time value gains accrue to you? If you really believe the stock will trend lower toward 370 over the next 18 months, then those calls would slowly lose value, and mostly end up at zero. Now, if you think the stock will trend lower toward 370 and continue substantially below 370, then the puts could end up being worth far more.

Plus, of course, if you sell options, you get the money in hand and it can earn interest for the duration. When you buy options, the money leaves your account and earns interest for the person who sold you the option.

Post New | Post Reply | Report Post | Recommend It!

Print the post

Unthreaded | Threaded | Whole Thread (16)

Prev | Next

Announcements

Retirement Investing FAQ

Contact Shrewd'm
Contact the developer of these message boards.

A community forum supporting civilized, and highly helpful, self-educating investors that come together for Shrewdness and merry spirits. These message boards closely follow the look and feel of the old message boards at boards.fool.com prior to the boards redirected to discussion.fool.com. Shrewd'm is not affiliated with the comprehensive and excellent investment website, The Motley Fool (TMF), in any way. The Shrewd commmunity here has owed, and continues to owe, gratitude to The Motley Fool for nurturing a culture of jovial irreverence towards Wall St, and that tradition will continue here.