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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Id who wrote (9174)	10/29/1999 6:11:00 PM
From: freeus	Read Replies (3) \| Respond to of 54805

reselling puts I think you are exactly right: And very clever to keep your put selling to these gorillas (and this is a great time of year to do it too). I have sold some on Q and JDSU...not likely to get the stock on either, and its always a happy event making extra money. Dont do what I did and sell puts on a non gorilla: I lost mucho bucks doing that on NITE and then stubbornly staying with it until I had a major loss...I no longer wanted the stock as it was exhibiting such weakness. But with Q, Gmst, Jdsu, its amazing anyone is buying the puts we're selling!!!! (Dont have any on gmst but its a good idea!) Freeus

To: Dr. Id who wrote (9174)	10/29/1999 8:39:00 PM
From: Kayaker	Respond to of 54805

Jeff, I was shorting puts quite a bit in the spring and have given it up. I think that with stocks like JDSU and QCOM, I would end up missing out on some of the massive runs, and as you point out, I would miss the buying opportunities at the bottoms. I'm also pretty conservative and always set the full 100% cash amount aside in case all stocks were put to me in a crash. So I found it better just to buy the shares, hold long term, and avoid the taxes. At some point I'll probably go back to shorting puts, but only on boring stocks that have a nice steady, consistent rise and I can collect a predictable premium.

To: Dr. Id who wrote (9174)	10/30/1999 1:09:00 AM
From: Mike Buckley	Respond to of 54805

Jeff, I'm probably not the first to mention this to you, but ... I've also been [selling puts] on QCOM the past few months and collecting put premiums (the damned stock keeps rising and I don't get it put to me! And I want more...)! When you mention that the only downside is that you get the stock put to you if the price drops, your half-joking complaint brings out potentially a more important downside -- that you might be able to deploy your funds more profitably with a long position. --Mike Buckley