Sold some apple front month puts here

[RayJohns]

out of my AAPL position (2000 shares) at $209.70. Was planning to hold until $215 or $218, but felt like going to cash ahead of the unemployment report.

Ray

[lawrence-lugar]

Ray,

Have you ever bought both a Call and Put option for a stock...

What's your general take on this strategy, to cover yourself both ways?

[RayJohns]

Originally Posted by lawrence-lugar

Ray,

Have you ever bought both a Call and Put option for a stock...

What's your general take on this strategy, to cover yourself both ways?

I don't recall if I have ever actually setup a trade like that over the years, but I have thought about doing it quite a bit. Usually the issue is that you need to time a move on the stock (and a pretty large move usually) just right. I think I might have done it once or twice, very near options expiration.

Usually what I do is buy a stock I want to own, then sell calls on it. Or sell puts on a stock I want to own. That sort of thing. Either that or just speculate directly in the call or put when it gets near options expiration.

Ray

[STONER44]

Ray,

Can you educate me on calls and puts?

[RayJohns]

Originally Posted by STONER44

Ray,

Can you educate me on calls and puts?

Sure... here's an article I wrote some years ago (and which is posted in our resource center). Let me know if you have any questions:

http://www.daytrader.com/forums/showthread.php?t=3634

Ray