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Strategies & Market Trends : Calls and Puts for Income

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To: Jerome who wrote (146)4/9/2007 11:18:56 AM
From: Ira Player  Read Replies (1) of 5891
 
Jerome,

Not up short...just seeing patterns that aren't really there...lol... I must have too much time on my hands... I always end up digging into the details of things.

The human mind is very good at seeing patterns...some that don't exist.

I tend to keep my sales to short time options (4 to 5 weeks mostly, sometimes a little longer if I am very interested in the position.) I also usually back them up with a longer term, lower strike Option (Diagonal Spread) instead of the underlying stock, to lower my carrying costs. That, of course, comes with higher downside risk on a percentage basis.

Ira
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