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To: freeus who wrote (145620)	10/24/1999 10:30:00 AM
From: edamo	Respond to of 176387

freeus...re: "buy stock sell puts" one really has nothing to do with the other. you should buy top quality stocks to be retained as your core holdings. the timing of purchase of the stock may not be the best in a short term view, but you must only ask a simple question...if i buy now will it ever go higher? if the answer in your mind is no....then you don't buy. if yes...then buy and close your eyes to short term the core position if selected properly will grow. the put sales are done with the options of the core position. same with call buys. the strategy i use is primarily to add to my core position, or create a new issue in my core position. this way if you are wrong in the put sale, you have just increased a position that you have already found desirable. for timing i use only a slow stochastic momentum indicator, always works to indicate an oversold or overbought condition. you have to determine by experience of the underlying, how quickly the stock will turn. on a volatile issue as qcom, it turns on a dime, something like hwp may take weeks...with this intimate knowledge you determine the strike and expiration of the put. stay off of margin, as you will need the capacity if stock is assigned. but if you are correct in your initial determination the assignment will be at a lower stock price level, which is the same as buying on margin at the right time. you seem to get into trouble with margin buy chasing a stock. pm me and remind me to send you an explanation of stochastics...i don't have it at home, as it is in my laptop...this will give you a better idea of how to establish timing without any additional analysis software... take care..ed a.