NetNews Usenet Archive 1993 #3/NN_1993_3.iso/spool/misc/invest/16885

Text File | 1993-01-23 | 1.5 KB | 31 lines

Newsgroups: misc.invest
Path: sparky!uunet!mailgate.mobil.com!etpeters
From: [e-mail] (E. T. Peterson(Eric))
Subject: Re: Covered Calls:  Less Risk - High Returns.
Message-ID: <[e-mail]>
Sender: [e-mail]
Organization: Mobil Exploration & Producing Technical Center(MEPTEC), Dallas.
References: <[e-mail]> <[e-mail]> <[e-mail]> <[e-mail]>
Distribution: usa
Date: Fri, 22 Jan 1993 21:29:12 GMT
Lines: 18

In article <[e-mail]>, [e-mail] (Brent Buckner) writes:
|> In article <[e-mail]> [e-mail] (E. T. Peterson(Eric)) writes:
|> >Consider a covered put position:  short the stock at $40 and sell the $35 put
|>
|> Aside:  doesn't a covered put position consist simply of having
|> an account balance sufficient to pay for the stock at the
|> price of the put?

That's right.  The original poster asked a question about shorting a stock
and selling a put on it.  For lack of a better term I referred to it as a
"covered put" position.  Guess that is not technically correct.

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