sean, if a stock is at 60 and i sell a naked put at a 58 strike and at expiration stock is at 40 and i have to use my cash to pay 58 for a 40 dollar stock how is having cashing doing the same job as a long put with a strike of 60? drjoe
--- In ConservativeOptionS
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> Ashok
> CSP = Cash secured Puts.
> Bit like what u r doing, since u have cash to buy the stock if put is ITM. IMHO, cash is doing the job of LP.
> I like the way you are trading the system, ashok.
> sean
>
> --- In ConservativeOptionS
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> > I have been selling OTM SP's of ETF's or blue chips insurance)that I consider are at historic bargain price, without buying LP ITM insurance. If they get assigned then I don't mine owning them at that price; becasue I will then sell CC and continue to produce income. So far, this seems to work well in the upward market. drjoes starategy of buying ITM LP may give an added protection if the market suddenly tanks. Sean, what is CSP?
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