3 ms·
But you don't own our favorite stock at a discount. If you've written a put on AAPL struck at $450, and it drops to $400, you are forced to buy it at $450 - you
by throwaway13qf85 13y ago
But you don't own our favorite stock at a discount. If you've written a put on AAPL struck at $450, and it drops to $400, you are forced to buy it at $450 - you end up buying it at a premium! What's worse, even if you think the stock is too cheap at $400, you have a $50 hole to climb out of before you can start realizing any of that gain.
- icu 13y agoWell if you write puts willy nilly then you deserve to have your money taken. That's why you look at historical volatility and other criteria when selecting a watch list.