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Technology Stocks : Internet Guru Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (2507)	8/15/1999 10:38:00 PM
From: McNabb Brothers	Respond to of 4337

Michelle, 100% of all time value of an option will expire worthless and studies have shown that 80% and in some studies even more of the whole option expires worthless. I can not time the market, which I believe an option buyer has to be able to do, and I just hate having to pay time value for an asset that waste away every single day. I'm a firm believer that the money to be made in options is the traders that sell them rather it be covered or naked options. Most people feel that naked calls are the most risky form of trading, but it really is not any different than if you would sell a stock short. I only sell naked calls on stocks I would feel good about shorting in the first place and if they go above the strike price I sold and I have to go short the stock so be it, for it will be at a price higher than what the stock was selling for the day I sold the options. Same with naked puts I sell them also on stocks I would not mind owning at lower prices than what the stock is selling for when the option was sold. One other thing I like, in fact the best part of it, is when they they credit my account with the sell. I've always liked money going into my account as opposed to leaving my account. Hank P.S.-One has to be very prudent with their margin in options and willing to cover if one decides they would not want to go short the stock!