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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: im a survivor who wrote (1765)9/16/2000 10:53:36 AM
From: Jill  Read Replies (1) of 65232
 
I used to sell puts regularly and always pocketed the premium becaues I'd study the trading range and sell below what I thot the range was--or rather--what it had consistently been. I had open put positions in various stocks I liked, various strike prices an dmonths, some a bit far out.

Until APril, my god. Suddenly I'm watching those puts do the reverse of what a call does--you buy a call for 2--it goes to 20--well suddenly it would have cost huge amoutns ot uby back all those puts, or impossible amoutns ot exercise them all.

So I guess if you do it judiciously--you want a particular stock, you have the capacity in CASH (not margin) to buy it, then you will probably be okay. Its a useful strategy, I don't deny that, but when I look at what has made me the most $ in recent years, it was buying calls, or just holding stock.
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