02-18-2019, 05:32 AM
(02-17-2019, 08:09 PM)fenders53 Wrote: I've already profited on expired KO put sales. I have two open right now. When the dust settles I may keep 50 or 100 KO shares because these fools will run it up again someday.
But now again relating to this KO example... what I am reading now is that it's a trading strategy, with very little intention to keep the shares for the long term. You're looking at possibly getting assigned 200 KO shares but you only want 0, 50 or 100. Or something in between. So now we are very much talking about pure trading for profit, not using the puts to build your portfolio.
So that is what confuses me. Because sometimes you say it's for building your portfolio but for example in this case (I know it's just one example) it definitely looks like pure trading pattern to me. And of course there is nothing wrong with that, in fact as you know I'm a believer in trading with options. But short term trading and building a long term portfolio are two completely different things, in one the goal is to sell an option that expires worthless to generate income and in the other the goal is to end up with stocks for long term hold. Two completely different strategies with the exact opposite goals.