Selling Calls?????

[loosingstreak]

If the stock price approahes the srike price of my naked put,
1. I can offset my position by buying a call at the same strike price and accept a small lossor

Hello kkeskar,

Sir , i am still a bit confused . how does buying a call offset a naked short put. Is this not a vanilla long.

 

[kindman]

Ha Ha Kesar Ur Funny...

See First U Sold A Naked Put ..

And When The Price Reaches Near To Ur Strike Price Then U Buy A Calll??? Ha Ha Means Double Loss When It Goes Down

Ha Ha Ur Really Funny

 

[kkeskar92]

Ha Ha Kesar Ur Funny...

See First U Sold A Naked Put ..

And When The Price Reaches Near To Ur Strike Price Then U Buy A Calll??? Ha Ha Means Double Loss When It Goes Down

Ha Ha Ur Really Funny

Hello kindman
I dont think anything I said is funny and this forum is not meant to mock at somebody....I can also post in the language u use.
What I meant to say is clear.......

I have 3 options if the price approaches strike price of my naked put.
1. I can buy a put....sorry for the previous post where I misspelt it buy call.....and offset my position
2. I can sell the futures or short the stock in case I am playing intraday
3. I can accept if my put is exercised and buy the attractive stock at cheaper price.

 

[kindman]

Kessar Bayya I Am Sorry For My Language... Ur Correct

 

[srikanth_kandalam]

Ha Ha Selling Put Is Risky...

It Need More Margin

And Loss = Unlimited

And If U Want To Invest In Good Compani
Then Buy Call
Margin Less/ Loss Is Initial Amount Paid

Chief- do you realize that a naked Put ( or selling a Put) is Equivalent to a covered call- I am sure you will be shocked but that is the fact> Would you call a covered call strategy risk? IT depends on the market you can loose your shirt on selling naked calls if the stock prices keep going up!

 

[srikanth_kandalam]

Hello Kindman,
The whole derivatives and speculation is risky. Selling naked puts needs more margin but it can be offset by buying a call below the strike price of the sold put i.e. bear spread.
If you want to buy the stock of a good company, one would certainly like to buy it cheaper and not at a high price by buying a call.Why loose the premium by buying a call?
Unlimited loss?---
If the stock price approahes the srike price of my naked put,
1. I can offset my position by buying a call at the same strike price and accept a small lossor
2. I would sell the future of the said stock
3. even if the put is exercised, I can have a stock of a company at a cheaper rate.

Dude

You seriously are in need of Help!