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

To: the options strategist who wrote (1505)	7/8/1999 2:28:00 PM
From: Mark Z	Read Replies (2) \| Respond to of 2241

Two things: - you have very little time to take recovery action should the stock move against you - otoh, your % gain annualized can be much greater provided you're using that money the other 3 weeks of the month to generate some sort of return; otherwise, the absolute return will be greater the further away from expiry you write the spread FWIW, I've found going deep out of the money on some i-net stocks can generate upwards to 10% in a week e.g. long CMGI July 100's, short CMGI July 110's can be had for a net debit of 8 5/8 + commissions today. This, of course is not a recommendation!!! Only pointing out that the returns are there depending on your level of risk tolerance.