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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (143632)	10/2/1999 5:14:00 PM
From: edamo	Read Replies (3) \| Respond to of 176387

ian...re:"enough margin and fortitude" if rude was able to set the put position, it means he has enough margin......if he in fact sold the position, he has the fortitude. most fail to understand the mechanics of put selling. the cash premium actually increases the portfolio margin capacity. if put to him and he has no margin debt, there is no chance of being forced to sell. actually a lot less risk then going long at the current market i just had aol put to me at 200, with the stock at 86.........but i got a 94 premium at the time of the sale earlier in the year...no margin call, i have more then enough capacity, the stock recovered in about a week, and i'm in a small profit position. so much for what happens when assigned....and if you don't want to own it call write it out with a current expiration ditm position and grab a couple of more bucks...... i run on average a 1.5m exposure of assignment, been doing it for years, take in sizable premiums every year, lived through the october blood baths of 97, 98 and maybe 99? never had a margin call....i bet the margin players can't say the same. lessen the risk by always having the capacity, sell the puts in issues you own or want to own at oversold or rare times of inflated implied volatility. sell calls on your portfolio when issues are overbought. it's a win-win. but stay away from less then quality stocks. rude was questioned by taxman, who believes a short term option buyer always wins....dream on.... rude doing quite well, why be critical of proven success? why not take a survey of put sellers on the thread...how many losses against the call buyers on the thread....think you would be surprised of the folks who sell puts, its such a simple strategy that complex minds look over and dismiss.... good luck, ed a.

To: Ian@SI who wrote (143632)	10/3/1999 10:06:00 AM
From: rudedog	Read Replies (3) \| Respond to of 176387

Ian - As I said in an earlier post, I would not sell puts if I was not comfortable owning the underlying at the strike price, and I have the capacity to take the stock if it is put to me. I also said that selling puts if you do NOT feel comfortable taking the underlying is ill-advised. Always be able to buy your way out of the position or take the underlying... Of course there is risk in this position, that's what the premium is about. I have bet against some bear that DELL will remain above the strike. It seems like a good bet to me, but I need to be prepared to pay up if I lose. what if he gets an early assignment with Dell having slipped to 31 Not sure I understand this statement - the bet is for a specific price at a specific time. How do you imagine that the put buyer would be able to exercise ahead of expiry?