Thats true, I did suggest reading up on it so people would learn the risk/reward etc.
With the Naked Put that I did on FMG, The Options are paying a premium right now,
So it was a 6 week exposure. and based on getting Put. The next objective would be to sell a Call option.
If say FMG dropped to 3.70 on the day after I was Put. Then Id be trying to sell a longer dated call at 3.50 or lower.
Trying to get a yield where the total recieved gave me my $4.00 back plus some.
If FMG at 3.70c Id be trying to sell a $3.40 call at 65c or so.
Or a $3.50 call at 60c, thats with the stock at $3.70
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Thats true, I did suggest reading up on it so people would learn...
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