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Motley Fool Pro / Pro: Catch-Up Trades


Subject:  Re: buy/write to catch up? Date:  1/31/2014  11:52 AM
Author:  proLon Number:  558 of 830

Hi Frank,

If you write an at/near the money option (put or call), and the stock plunges, then is it better to be PUT a falling knife or owning one?

The only difference that I can see is that owning the shares and writing calls has you at or closer to a long term gain or loss than acquiring via puts. If you really have a long term view, it doesn't matter at all.


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