Options Message Board - Msg: 13363715

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Strategies & Market Trends : Options

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To: Poet who wrote (6080)	4/6/2000 9:09:00 AM
From: edamo	Read Replies (2) of 8096

poet...."longer time much slower theta" why hesitate?......paul describes an imminent rain storm....it's a great umbrella, even if it closes slowly... object of any strategy is not to get thoroughly drenched...and while you are safe and dry, you have the time to replace your "repair" with perhaps a shorter term oversold position in a different stock.... it's a dynamic... i sold all 01 leap puts on monday....not the best return, but a hedge to replace the common i blew out...better then covered call writes, if the stock bases and trends up, i can buy in at a higher price(strike plus premium limit), subsidized by the deteriorating put premium....... not sure if this is "text book".....but it has worked for me in many uncertain markets....i'll capture immediately the inflated implied volatility when things normalize....this tactic is stock specific, in the sense that i wouldn't do it with speculative/weak underlying issues....with those i would cut and run...

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