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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: j lawrence who wrote (1457)	6/22/1999 11:21:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 2241

What you propose to do is entirely rational, and is known as "rolling down" ("rolling up" if you had calls that were profitable). You may also want to consider these possibilities while rolling-down: - Take money off of the table. On a large profit like this, it is common to roll-down to the same quantity of a lower (higher, if calls) strike, while pocketing the balance. Or, at least putting your original investment back into your pocket, while winding-up owing even more puts than you had in the first place. - Consider protecting yourself from a move to the upside with some cheap out-of-the-money calls, to "cap" your put position.