# What's a good stock to purchase for Put options?



## Roger (12 October 2005)

I have not had any experience in options but understand that you can sell your shares as insurance 
To do so I understand you need a portfolio what is a good stock to own to do this?


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## RichKid (12 October 2005)

*Re: What's a good stock to purchase for Put options*



			
				Roger said:
			
		

> I have not had any experience in options but understand that you can sell your shares as insurance
> To do so I understand you need a portfolio what is a good stock to own to do this?




Welcome to the forums Roger!

Not sure if you should be buying shares just to be able to write puts, is that the case here? To use options as protection from a downturn in the sp the idea is generally this: if you own a stock you can buy put options on that stock which allow you to sell that stock at a fixed price. 

I think you need to do a lot more research and some share trading before going anywhere near options, just my opinion not advice of any sort. Please spend a few weeks or months browsing through this Derivatives forum before committing to options, it'll be worth it imo, lots of books mentioned here too, the www.asx.com.au site is as good a place as any to start, they'll send you an options info booklet or you can dowload it and also do an online course for free.

Happy reading!


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## happytrader (13 October 2005)

Roger said:
			
		

> I have not had any experience in options but understand that you can sell your shares as insurance
> To do so I understand you need a portfolio what is a good stock to own to do this?




Hi there Roger

The short answer is one that's in a strong uptrend. Realistically, this is a high risk business. Don't even think about it until you have talked to a qualified derivatives advisor who is also a successful private trader. Try www.ffi.com.au for educational purposes and courses. These are only my thoughts and are certainly not to be considered as financial recommendations.

Cheers

Happytrader


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