How to do it on etrade.ca?
-it.uncle(路谣);
2008-4-24(#32286@43)
"short 它的put,加个安全系数 ", I don't understand. Could you explain it?
-goodluck8(乐笑每天);
2008-4-24(#32313@43)
short 它的put == Write (sell) put
-tala(OilTiger);
2008-4-24{108}(#32325@43)
Buy selling a put, you earn some premium. If you buy a call option, you pay premium. That is the difference.
Warning!!! Unless you are extremely confortable with the stock, you should not do this. For example, never, never, never do this on biotech stocks. In addition, you should limit the size of your trades.
-wang-lao-wu(钻石王老五);
2008-4-24{178}(#32293@43)
Please analyse the risk in this trading method thuroughly.
For safety, I usually apply this to ETF, because I believe ETF is unlikely to drop 50% in a week.