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Strategies & Market Trends : Rainier's Column

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To: kjhwang who wrote (27)4/14/2000 10:02:00 PM
From: HeyRainier  Read Replies (2) of 106
 
TCI,

How do you stand on your short put positions?

Given current market conditions, put premiums remain rich, and could get even richer if conditions worsen. Margin calls are accelerating, and to my advantage, I have experienced that liquidity requirement-driven prices have tended to be attractive points of entry for assets.

Next week is options expiration week, and the rate of decay seems to be fastest at this point. Combine that with rich put premiums, margin calls, and extended conditions, and it would seem to be an attractive idea to start writing puts once the market clears its urge to purge. Just a personal observation, of course.

Rainier
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