Wednesday, January 11, 2006
Sold 20 SFCC Jan $15 puts at $0.45
Alright, I decided to make my first "sell puts" option play. So, in order for me to lose, SFCC would have to close below $15 by next Thursday (since Friday is a holiday). By selling 20 contracts, my maximum profit is $900. My maximum loss is having to cover SFCC at $0, which will most likely not happen. I could always buy the 2000 shares of the stock to cover my losses at any time.
Posted by boogster at 12:40 PM