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Strategies & Market Trends : Options

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To: Jill who wrote (7592)5/6/2000 8:57:00 AM
From: edamo   of 8096
 
violate a basic rule of put selling..."always have the capacity to accept the assignment"...."always" means "always"....if not you are in over your head, and margin problems can ensue...

you can't lose anymore then owning the common at a discount, if you have discipline and capacity, very profitable......but leverage your way up, fail to see a topping, for whatever reason, normally greed and belief of opportunity loss, and the strategy which you believed to be conversant in goes against you....

margin god doesn't exist....you have to conjure him up...
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