peterhuang913
Retired.
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GOOG is hot right now!!!!
- Thread starter peterhuang913
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Jorsoft
Fully Optimized
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<Gasp!> Google really IS the devil! Bill Gates was right!
Apokalipse
Golden Master
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Google would be a very good stock to put a collar spread on.
which means:
Buy stock
Buy put options a couple of strike prices out of the money (OTM) to protect your losses
Sell call options OTM (with a strike price a couple above what you bought the shares for) to cover the cost of the put options
If the stock goes down, your put options will be worth more, and cover your losses.
If the stock goes up, and the call options you sold get excercised, you'll be forced to sell your shares for a profit.
If the stock stays the same, close the options 30 days before expiry (because of time decay), and then buy/sell the same options again, but further out in time.
Google has a tendency to make very big moves, so collar spreads are extremely useful.
which means:
Buy stock
Buy put options a couple of strike prices out of the money (OTM) to protect your losses
Sell call options OTM (with a strike price a couple above what you bought the shares for) to cover the cost of the put options
If the stock goes down, your put options will be worth more, and cover your losses.
If the stock goes up, and the call options you sold get excercised, you'll be forced to sell your shares for a profit.
If the stock stays the same, close the options 30 days before expiry (because of time decay), and then buy/sell the same options again, but further out in time.
Google has a tendency to make very big moves, so collar spreads are extremely useful.
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