Options 201: Beyond Obi-Wan-Kenobe Message Board

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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

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To: Dan Duchardt who wrote (792)	2/28/2003 5:06:37 PM
From: Allen Furlan	Read Replies (1) of 1064

Hi Dan, my RMBS position is partially an attempt to lose money on the long side this year to offset a bunch of short term gains which occurred in Jan 2003 expiration cycle and will probably repeat in Jan 2004 cycle. I have tried to do calendar spreads using IRA for long side and margin account for short side but without success so far. Anybody have ideas on how to lose money in margin account and make money in IRA?? My SGR put position is rather iffy now with downgrade today. The company needs to redeem some of their LYONS convertibles or they will act like toxic convert. As to closing out cheap naked calls, I prefer to keep them open if yield on margin is at least 10% annualized, which means I rarely buy back naked calls on very low priced issues. FWIW a professor at Cal Tech, Edwin Thorpe if my memory is correct, wrote the definitive work that began the card counting craze in Lost Wages. His first work however was on warrant hedge strategies. Do not know if the book is still in library but it is worth a read for those interested in such subject.

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