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Strategies & Market Trends : Options

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To: Jill who wrote (7439)5/5/2000 2:18:00 PM
From: Bridge Player  Read Replies (1) of 8096
 
<< So, it's not worth it to hold them under a buck. You can free up your margin capacity and do something else with it. Some people want every last dollop of profit >>

Thanks Jill I got my answer here.

But again, the closing of the put presupposes that you have additional use for the margin. i.e. your account is still quite heavily leveraged via the use of margin, so that every increment of freed margin power will immediately be used to "do something else with it". I might observe that some people insist on using every last dollop of margin available.

Contrary to many posts here about "learning a lesson" etc. I think that this betrays a continuing bullishness that has not yet been wrung out of the market. This is merely a market observation and not criticism aimed at you or any strategies that you may employ.

BP
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