×

Loading...

Thanks for the suggestion. Again I am new to option trading so I have some newbie questions. If I have enough other stocks or cash in the account, these will serve as my margin, right?

hilo(still mellow)
In other words, writing puts shouldn’t incur any interest, provided I already have some kind of “collateral” with the broker?
(#29@43)
Last Updated: 2007-4-17
Sign in and Reply Report

Replies, comments and Discussions:

  • Planning to buy some ETFs, particularly FXI(Xinhua 25) and AWA(Australia), but maybe I should wait for another Feb 27 to happen... SH index is almost 3600 now. -hilo(still mellow); 2007-4-16 {155} (#1@43) +1
    I am unloading all my funds in US funds. For Canada, haven't decided on buying ishare for TSX or a sector ETF. How does the material sector look to you?
    • I took 08/2007 $108 puts a few days ago. At this moment, I am wrong. I am trying to break even by changing my long put position into put calendars. I hopy I can finally win in this bearish bet -wang-lao-wu(钻石王老五); 2007-4-16 (#7@43)
      • Long term I am bullish on FXI. Almost all of the underlying stocks are dominant in their industry and guaranteed by government. -hilo(still mellow); 2007-4-16 {619} (#15@43)
        20x PE is still reasonable, even for banks. ( I know, but they are Chinese banks). Short to mid term it might adjust, as the pull back of SH and SZ exchange will create panic in foreigh investors, like it did in Feb.

        My (planned) strategy with FXI option is to sell out of money puts($95 or $100 at this point), and invest cash in money market. If it go higher, my combined return from writing puts and money market will be approximately 6%, not bad for sitting on the sideline. If it dives, I will lose a little on the put, but I got the opportunity to build up position at lower cost.

        Hope it works out well.
        • I don't think it's a good idea to sell 95 and 100 puts at this moment. Way too far out of money, so your return will be very low considering your margin -wang-lao-wu(钻石王老五); 2007-4-17 (#27@43)
          • Thanks for the suggestion. Again I am new to option trading so I have some newbie questions. If I have enough other stocks or cash in the account, these will serve as my margin, right? -hilo(still mellow); 2007-4-17 {128} (#29@43)
            In other words, writing puts shouldn’t incur any interest, provided I already have some kind of “collateral” with the broker?

More Topics

  • NVDA顶多还有一天，又要跌。
  • 标普香港创业板指数因交投冷清，指数一路探底，从2007年创下1823点的峰值以来，4月22日指数收在16点，跌掉99%，只剩渣渣。
  • 老马把特斯拉的便宜车冲销量的计划打断，强上Robotaxi，立法安全问题一大堆。一片混乱。
  • 还是做短线方便，买热股涨些就抛，不容易赔，可能总忙着，而热股搞长线想着远景投资，容易被套住，牛熊转换太快
  • 佩服maplus 等高手，果断清仓。我持有的三倍SOXL， TQQQ， UPRO 从高点跌下好多，还在犹豫要不要抛掉。痛苦啊！
    • 投资论坛