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Strategies & Market Trends : Options

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To: edamo who wrote (7884)6/1/2000 12:43:00 PM
From: PAL  Read Replies (1) of 8096
 
ed ... you took the words out of my mouth. the naked puts allows for repair strategy, and gets money in the pocket. we are not the type who like to go to the roullete table, bet on a certain number, and if the ball happens to fall to that number, he/she will proclaim what a genius the person is for making that selection.

as you have repeatedly posted, especially to the newbies, this is not a get rich quick method, but a way to get decent return on the money: willingness to be assigned, and have the capacity for that. yet, many option primers are reluctant to show repair strategies.

of course we have to look at the market. how many times have we been given false readings that reversal was happening? qcom has fallen seven of the last eight sessions in heavy volume. how many newbies bought calls 4 or 5 sessios ago thinking that qcom could not fall even more. is qcom a good buy or goodbye? naked put allows you to be wrong and do a repair.

good to hear from you again

paul
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