mazag08 said:
FJ43 said:
mazag08 said:
Senor Butthead said:
flows looking nice for F
in Feb 11 23c
Look at the put interest in Feb. Set a tight stop in case it reverses against you.
Could also be synthetic long interest.
How so? Because you think the people selling the put at that level think it's going up?
If that's the case, then the OTM calls could be synthetic short interest.
Yes. Selling puts is an excellent synthetic long if you believe the stock will maintain and your net cost is at or below support. If they aren't synthetic long they believe the puts will expire worthless and they've kept the premium.
OTM calls could also be long calls. Selling naked calls is dangerous business. Sure it is done all the time but better if as a synthetic short they are also buying the same strike put.
Now if I bought last week or so in the 19s I'd probably sell near date $23 calls to lower my cost basis or lock in additional gain.
Wealth gained hastily will dwindle. but whoever gathers little by little will increase it.
Proverbs 13:11