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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: pompsander who wrote (207)	12/28/1999 8:29:00 AM
From: Jill	Respond to of 8096

Pomp...I think that's a great strategy. It's very close to what I do. Initially I sold leap puts but unless you have an extremely fat portfolio with double commas in the double digits, it really ties up margin collateral for a while--although I remember once selling CMGI leap puts right before its incredible runup to 300...and the put went down 50% almost immediately. But basically selling a month or a few months out, on an oversold situation, and using the premium to do whatever, has been very successful for me too. Also, being willing to be put the stock is important psychologically--you don't actually feel "naked" then--either outcome will build your portfolio. Edamo taught me that way back when. Jill

To: pompsander who wrote (207)	12/28/1999 8:59:00 AM
From: Poet	Respond to of 8096

Hi pompsander, Welcome! What a great post on selling naked puts. Thank you for the run-through and specifics, as I'm gearing up to do the same myself after January. Please feel free to post other trades you make. I'd love to follow along. BTW, I told the thread I'd post my own options day- and position trades. Here's the first: Last Thursday, in the face on QCOM's weakness, I purchased 10 contracts of the Jan 480 calls, at $45 7/8. I set a limit sell at $49 7/8, looking for a 5k profit, minus fees. It didn't hit on Thursday, but I sold yesterday afternoon when QCOM zoomed. Yes, I left money on the table. (A lot of it in this case.) However, I've got a bunch of Feb QCOM calls which caught the entire move yesterday and now have more cash in my account(options trades are settled at the end of that business day, rather than the three-day wait for stock transactions)to purchase some more GMST calls. This is a risky strategy with options, but one I employ from time to time, and is yet another example of the many ways options can be traded.