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Old 08-18-2005, 04:37 AM
Sniper Sniper is offline
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Join Date: Jun 2005
Posts: 704
Default Re: Short Sell Google?

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Please explain the advantage. I'd also like to know why buying puts in this situation is better than selling calls.

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Well considering that based on your OP you don't own any GOOG stock...

If you are wrong and GOOG keeps going up, with buying puts you've lost a litttle bit of money, while your sold calls will cost you alot of money.

If you are right and GOOG drops like a rock, your bought puts will make you tons of money, while your sold calls will make you a small amount of money.

So bottom line (when naked, you dont own the stock)...
Buy Puts = Low Risk, High Reward.
Sell Calls = High Risk, Low Reward.

I wouldn't recommend either strategy with GOOG at this point.
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