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Strategies & Market Trends : Tech Stock Options

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To: Nemer who wrote (35079)	2/16/1998 10:44:00 PM
From: ViperChick Secret Agent 006.9	Read Replies (3) of 58727

Shoeless Nemer... Got a question for you on this post...I am missing something ( maybe it is because I am watching Ice Dancing) ----->How about buying those calls, then finding a resistance point for the bounce and writing puts against half your existing "long" put position. Now if you get your bounce you can cover the "short" put position for a profit and if the market does not bounce you are still riding out half the puts with a locked in profit on the other half. This is an excellent method to implement. I have done this several times lately and find it to be profitable. And one can add to the above nice covering ploy---- "If if you don't get the bounce, and it goes lower than your support figure, you can dispose of the newly acquired position for a (hopefully small) loss, ride the hoss down some and implement the strategy again, using another support point." when you are talking about "resistance" point to write puts... do you mean support...because it would not make sense to me to do it at a resistance..... or am I just not getting something here

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