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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: Think4Yourself who wrote (61979)3/10/2000 10:30:00 PM
From: upanddown  Read Replies (2) of 95453
 
Next Friday is a triple witching

There is often a pattern where the stock settles close to the call strike price with the highest OI. Seems to be an attempt to have the largest possible number of calls expire worthless. Hope that doesn't include my 30 GLBL 10 puts. They would really have to collapse to get in the money.
Selling in-the-money puts on some of these OS issues has really worked beautifully for the last six months. Premiums have been excellent because of the negative sentiment towards this sector and you open the position without any cash outlay other than using some margin and premium as collateral. If my GLBLs are safe, I've made 60K in the last six months without a single loser. I think the key is to find stocks you like with attractive premiums and where the breakeven (if exercised) looks like an attractive entry point for the stock. Right now I'am short some May BR 30 at 26.86 breakeven, some May MDR 10 at 8.14 and some Aug XTO 10 at 7.30. This doesn't seem too scary. I think it is that "naked" tag they put on short puts/calls that make people think they could lose your shirts.
Not advocating it for anyone else but it is a strategy that can be successful but is not considered by many.

John
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