Options 201: Beyond Obi-Wan-Kenobe Message Board

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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

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To: Thomas Tam who wrote (54)	8/16/2001 2:34:12 PM
From: edamo	Read Replies (1) of 1064

Thomas...in a market with a downward bias, the put sale offers a bit less risk then the buy/write... i liken it to a roller coaster ride....the ride is in progress, you could either buy a full price ticket(buy), get a discount(write)jump on in motion, but not know when the ride ends....or you can have the amusement park pay you(sell put), get on at the same time and ride till it stops, or till you elect to get off....if the ride stops before you get off then you pay not for the full price ticket but a discounted ticketed(assignment) and get a further discount(call write) when you get on.... i'm confused , so you must be...in essence if you are unsure of direction, but tend to think long, best to lead off with the put sale and let the ride take you to where its going! ed a. p.s...and with jnpr plunging, i'm still comfortable with an underwater position, that won't cause me to swallow water until i'm assigned...meanwhile i'll try to reduce cost through premiums, and perhaps add some naked calls...

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