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Strategies & Market Trends : Options

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To: steve mamus who wrote (3154)2/17/2000 10:34:00 PM
From: edamo  Read Replies (1) of 8096
 
dok....your strategy works for me....

desire to own, and capacity to accept assignment are imperative. if you are bullish, a put sale is akin to a long position. just for talking sake...you like csco, it's at 130....you think it will double in two years, so you can buy 1000 shares and take 130k out of your pocket, or sell(if they exist) an 02260 put and depending on the volatility get 140 per contract...sell 10 contracts and you have 140k cash to your account...

a hypothetical example, the numbers are fictitious, but within reason, no different then going long and riding the stock up until it doubles, worse case you own it below the current market....

perhaps not such a bad idea?
or a loss of opportunity?
able to spend opportunity?
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