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

To: Jeffry K. Smith who wrote (709)	1/5/2000 11:50:00 PM
From: taxman	Read Replies (2) \| Respond to of 8096

this limits you profit and you are still at risk big time if the stock tanks. stick with the long calls. limit your plays to what you can afford to lose and you'll do ok. just my opinion based on my experience of buying versus selling options. regards

To: Jeffry K. Smith who wrote (709)	1/6/2000 10:25:00 AM
From: SecularBull	Read Replies (1) \| Respond to of 8096

Jeff, >>create spreads with a long leg of a DIM option (best with a long term one) and selling a short term option at a higher strike price.<< Some refer to this as a laddered bull spread. You can continually re-write near term calls against the long position, as the near term options expire closer and closer towards the expiration of the long position. This is a great alternative. However, it does require a systematic and disciplined approach to options trading, and is not well suited for the hip shooting investor. I prefer to avoid call writing (to my own detriment), because I don't like being tied down to positions. LoD