Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: 1000 Big funky green star, 20000 posts Top Recommended Fools Feste Award Nominee! Coverage Fool Supernova Phoenix 1
Mission Team Member CAPS All Star SN Explorer 1 Mission Team Member Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 20179  
Subject: Re: options Date: 6/30/2003 12:50 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Hi 1poorguy,

And in both cases, do I specify shares or contracts (with the knowledge that if I do shares I have to specify in multiples of 100)? Like I said...the mechanics of placing the order correctly isn't intuitively obvious to me. How the options actually work, I think, are straight-forward.

NO and this is important.

One contract represents a 100 shares of stock. If you place 100 contracts you could be made to buy 10,000 shares of the underlying securites if the put is exercised.

There is a discussion on the Fool on the Hill board involving the whole world against me. I like the strategy, but there are those who do not. Xfatott made some good points about just selling the stock rather than selling the call, but this in my opinion this does not fit all sizes of situations and writing call and put strategies are profitable when well thought out and preferrable to just selling the stock. When trading stocks you have to well think out those trades too. In my opinion there is no difference.

But check out the Fool on the Hill discussion board
tom


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement