Skip to main content
No. of Recommendations: 0
Yes, except that the puts need not expire worthless. The at the money option premium decays as the square root of the time to expiration. So if you are just trying to hedge your total holdings, buy a put that is at least 2x the time to the earnings report.

Ok, that makes a lot of sense. When I first read that, I thought I made a mistake on the erp date, but as it turns out, the April puts I bought should be far out enough that I can still sell it after the report comes out. Whew!

That's odd. The normal rules in IRAs should allow you to buy either puts or calls.

I thought I read that somewhere. But when I asked my broker when I opened the IRA, the options agreement I signed was only for selling covered calls. I think I need to do more research on alternative brokers.

Thank you very much for the response.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.