Inflation Premiums at Multi-Week Highs Suggest Breakout for Commodities [View article]
I think "untrusting investor" must have meant "buy puts, wait for prices to decline, then sell at a profit," if indeed he/she believes that prices will fall in the next 1-24 months. I don't know why anyone would write puts in a declining market — to keep the premiums and have the options expire worthless, you'd have to write them at so far below the current stock price that you'd get next to nothing for selling them.
On Sep 26 06:42 PM untrusting investor wrote:
> Ok, you probably will be OK over 5-10 years and make a little. But > much better entry prices will be available over the next 1-24 months > for those who are patient. The much safer and probably more profitable > trades over the ST are to sell puts, collect the premiums, and wait > for better put or entry prices.
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I think "untrusting investor" must have meant "buy puts, wait for prices to decline, then sell at a profit," if indeed he/she believes that prices will fall in the next 1-24 months. I don't know why anyone would write puts in a declining market — to keep the premiums and have the options expire worthless, you'd have to write them at so far below the current stock price that you'd get next to nothing for selling them.
Sep 27 12:57 pm
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All Comments by Whitslack »Inflation Premiums at Multi-Week Highs Suggest Breakout for Commodities [View article]
On Sep 26 06:42 PM untrusting investor wrote:
> Ok, you probably will be OK over 5-10 years and make a little. But
> much better entry prices will be available over the next 1-24 months
> for those who are patient. The much safer and probably more profitable
> trades over the ST are to sell puts, collect the premiums, and wait
> for better put or entry prices.