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

To: RoseCampion who wrote (1510)	7/8/1999 4:59:00 PM
From: Mark Z	Respond to of 2241

My only problem with that is my broker would require me to have $100k in collateral to sell 10 puts on CMGI at 100 (CMGI is non-marginable with them these days). And right now I don't have $100k in free cash <g>. But you're right. Selling puts - especially to finance the purchase of calls - is a great strategy. I tend to use it for less volatile stocks like CSCO, MSFT, LU, HD, WMT, BUD, et al and go much further out in time (like January 2001 or 2002!). That way I can buy back the puts when they depreciate & free up cash the broker requires me to keep.