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kr · Post by kr » Fri Dec 17, 2004 4:45 pm

actually I think that's the best strategy - better to be short the vol and short the upside

in this kind of situation you are not really getting a great price on puts

inarrears · Post by **inarrears** » Fri Dec 17, 2004 4:54 pm

the calls look like the better strategy

but on the practical side, eg investing with personal account, will require greater margin requirements

covered call writing will might some of the margins

Johnny · Post by **Johnny** » Fri Dec 17, 2004 4:59 pm

[i]covered call writing will might some of the margins[/i]

So now you've gone from buying puts to selling puts?

ComteZero · Post by **ComteZero** » Fri Dec 17, 2004 5:17 pm

some lock-up expired mid DEC4, but a greater amount is due FEB5

inarrears · Post by **inarrears** » Fri Dec 17, 2004 5:18 pm

sorry...

i know it's a really stupid comment, but to point existence of margin requirements for writing calls

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Jan06 call 220 vols around 40%, ~ $17

Jan06 put 140 vols around 50% ~ $17

Writing calls = get a bad premium

buying puts = paying an expensive premium

Johnny, this is a stupid question, but what's the advantage of selling calls to get a small premium over buying puts and paying an expensive premium?