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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: CrazyTrain who wrote (79363)	12/16/1999 3:19:00 PM
From: R.E.B.	Read Replies (1) \| Respond to of 90042

The reason I don't sell the April 17 1/2s is because April is too far away and will tie up my capital for 4 months. Last month I sold the CS $20s because the stock was about $24. Recently (last week) CS was up over $25 and the put that I sold went down to 5/16ths... so I bought those 20 cotracts back for $475 and immediately sold the January 20s for $1,600.... netting $1,100. As soon as these puts get down near 25 cents, I'll close them out and go out the February. By the time April arrives, I will have more free money, less exposure as to time, and the ability to adjust to a higher put, e.g., $22 1/2, when the opportunity presents itself.