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Strategies & Market Trends : The Options Box

QQQ 605.75

-1.7%

Feb 4 4:00 PM EST

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To: mishedlo who wrote (9562)	2/12/2001 12:01:58 AM
From: hobo	Read Replies (1) of 10876

Selling PUTs in a rising market can get you screwed in a hurry. if I sell a put (as i did on the qqq's), and let's say that, (for illustration purposes), as you suggest from Monday through Friday the NASCUAQ does rise.... i will be one happy oink-oink because as the market rises the puts will lose value, allowing me to either buy them back (if i so wish), or let them expire worthless (if the market price of the underlying has gone up past the strike price of the sold put). so under those circumstances, i can not see how i can get screwed ? i get to keep the premium for my trouble. you must mean if i had BOUGHT the puts,(long puts), then yes, i agree with you. but not if i SOLD the puts, (short puts). now... as for a rising market... hmmm please make it so.... -gg-

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