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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: wlheatmoon who wrote (21816)2/26/1999 5:55:00 AM
From: accountclosed  Read Replies (1) of 86076
 
It is a time honored way to invest. Same as a covered call. Except that you can't sell puts in a retirement account. The problems with the strategy are that 1. you don't participate in really big upside and 2. you have to leave margin in your account to cover the brokerage in the event that you are put the stock. Do the math and decide whether the put premium is a sufficient return on your money versus the potential downside and decide if you are willing to cut off upside.

In this market, what upside? <g>
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