Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (687)	11/15/1999 2:44:00 PM
From: luther yow	Read Replies (2) \| Respond to of 3770

I too have sold puts on several stocks to establish an entry level. However my broker requires that I put up 50% margin plus a 25,000 extra in cash. Please tell me the terms of your broker and who it is if you wish. Thanks Luther The 47.5 should be looking good before the end of the week.

To: Chuzzlewit who wrote (687)	11/15/1999 9:39:00 PM
From: fellowfool	Read Replies (1) \| Respond to of 3770

Chuzzlewit-Thank-you for responding. The explanation re your January timing is understandable. I am just learning to actually consider the volatility on options. I think that I just automatically took advantage of volatility without "putting" a number to it by selling puts when there was a sharp drop in the stock. If you don't mind pursuing this topic a bit more... Do you ever close your positions if you get a (for example greater than 50%) profit over a short period of time and there is still a long ( 3 months or more) until expiry? I did not do this at first and it worked quite well just letting the puts expire worthless. Then last year (98) when we went through the big correction I had to close a number of positions at a loss because all of my out of the money puts with much time remaining had become in the money and I was running out of margin. I realized that I had overextended myself on this particular strategy because it had been working so well --in a bull market. Now I try to limit my exposure at any one period of time. Also I do close positions if there is a substantial profit and much time left for the picture to change. I am also learning (just starting) to consider technical analysis in the timing of the opening and closing of positions. It always seems like I am leaving money on the table when I close a position with time remaining but it often offers the opportunity to do the process again. Recently I also had success with GBLX, selling the Nov 34 put for 1 /34 when the stock was at 34 3/8. Also did this about a month ago and closed the position in a week with a 1 point profit. I currently hold open Leap position in G, sold at 3 1/4 when the stock dipped down to 33 5/8 on Sep 29/. This is one where I am giving the company time and I would not mind buying G at under $30. I wonder if G is in the category you refer to where earnings may be a concern. Again, thank-you for your reply and good luck with your trades. FF