Quote:
Originally Posted by lewdog
Ok bud, I have covered calls down.
Now on to puts.
How did you buy a stock at $19ish and have it currently trading in the $17's but "made" money on it losing value? How do you short a stock you currently own and where does the money you make come from?
What do you mean when you say "I averaged down and the call premiums had no good value?"
Thanks for the help! I owe you a beer!
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I began buying the stock at $19.94 and bought more down to $19.01 with a cost basis of $19.54.
I also after the last purchase of the stock bought 10 out of the money puts with a $18.00 strike for June 2018 cost of $1.22 each for a total of $1,246 w commission.
The stock has gone down since I purchased losing money in the short term and the puts have gone up slightly cutting my total loss on GE. I would need to sell the puts to recoup some of the losses in the stock. Right now all profits and losses are on paper.
The puts are independent of the stock.
Next time we meet I'll give you an in depth lesson BEFORE we drink....
