Congratulations! Could you share how exactly it works?

回答: My fifth month to sell puts on ATPGlongterminvestor2010-09-16 11:05:42

Congratulations!

Could you share how exactly it works?

For my understanding, if you sell 1 put, you get paid $102 today for Oct 15 2010 put. Today's price is $12.00.

Possibilities on Oct 15 2010:
If the price of ATPG is $10, then you need to buy 100 shares of ATPG at $12, so you'd loose $100 on this deal.
If the price is $11, then you break even.
If the price is $12, you've just made $100.
If the price is $13, you've still made $100.

Is there any other profit center?

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No, the maximum he can make is $102 :-) -Conehead- 给 Conehead 发送悄悄话 Conehead 的博客首页 (60 bytes) () 09/16/2010 postreply 13:52:12

true, but if he has done this 5 times in a row -sunskitehomes- 给 sunskitehomes 发送悄悄话 sunskitehomes 的博客首页 (165 bytes) () 09/16/2010 postreply 16:51:43

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