America On-Line (AOL) Message Board

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To: Craig A who wrote (30780)	9/15/1999 8:15:00 PM
From: Steve Robinett	of 41369

Craig, You comment, I do believe that 'trained professionals' are difficult to trade with/against. If you mean by "trained professionals" option market makers, they don't count. Their job in life is to get the risk free rate of return (T-bill rate) by living off the spread and stay neutral in relation to price movement. No matter which side of an option trade you take, buy or write on a put or a call, you are expressing a judgment about the stock, that it will go up, down or nowhere--the only three choices--whether short-term or long-term. Those are the same opinions you express when you hold a security long or short. You can use options to produce the same effect as any effect you would get from owning the stock (plus a few more) but you get to keep more money in the bank. And in trading options, it is just as important to "buy what you know" as in stock trading. Best, --Steve .

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