Selling Puts: Have Cash Will Travel Message Board

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Strategies & Market Trends : Selling Puts: Have Cash Will Travel

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To: Jonathan M. Lipchin who wrote ()	12/5/1999 10:54:00 PM
From: Matrix_Man	Read Replies (2) of 1235

Jonathan, I have just started using this strategy a couple months back. Had 6 different short puts expire in November. Seems sort of intuitive that this will work best with stocks that are in an uptrend and making new highs, or have really bottomed and are now coming back up. Last month I had 2 in the first category: SCOC and CREE, 2 in the second category: LRW and CMED. The other one that I had a few different contracts on was RMBS. They all expired worthless and I pocketed 6k. Note that CREE, LRW and CMED are all on Fortune's list of the fastest growing 100 companies in America, in fact, LRW is 7 and CREE is 15 - CMED is somewhere further down the list. This month I have only shorted CREE puts - early last week - the Jan 65's and Mar 65's. Now they still have time to run, but they are already out of the money. I am very bullish on CREE and would love to have some more stock put to me, so I really can't lose here. Oh yes, I am short some Jan 50 puts on XRX, which if I am put to I will have a basis of 26, not counting the 2 months of having the premium earn more for me. I don't know how good XRX at 26 is, but long term it should be ok. On a 5 year graph it is way oversold. I have been thinking about rolling this one out to a longer time frame. Have you done that before? Does it make sense? I have not yet figured that one out. Seems there has been very little activity on this board lately. Hope we can get more posting interest going.

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