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.

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

To: Jill who wrote (718)	1/6/2000 7:51:00 AM
From: uel_Dave	Read Replies (1) \| Respond to of 8096

Thanks Jill and thread re: suggestions on Options, I am also reading " Options as a strategic Investment by Lawrence McMillan " and I try to record important information, either on a computer file or note book to refer to in the future. Keep up the great work, it is only Jan 6 and already at post #718. I think I will go back and read them all again. Thanks David

To: Jill who wrote (718)	1/6/2000 11:54:00 AM
From: PAL	Respond to of 8096

Hi Jill: An excellent and very timely post. After reading the many success stories about options, some newbies might view as easy as picking fruits from a tree. Most people are bullish in the stock market, and anybody who only recently a take long position on options (up to Jan 3, 2000), are not feeling good. Option is much riskier than stock, therefore. brokerage firms require an additional form to be filled. All of the information in that form is used to determine whether the applicant is suitable for that type of investment. Yet, you can fill in any information you want since you do not have to provide any proof. When the market zooms north like in December, any person you talk to feels that he/she is an expert in the market. Even my gardener feels good having a few shares in QCOM even though he does not know what CDMA is. On the other hand, what would you do when the market heads south. Just look into the number of postings on this thread the past three days: very very thin. I do hope for a lot of discussions about what to do during a correction like this. Hopefully your posts put real perspective to newcomers to option that this strategy can go against big time. Do they invest inly the amount of money they can lose, do they take into consideration of willing to take a loss to avoid the chance of bigger loss, are they overextended in the margin? There are many advice and suggestions on SI, many of them are in the opposite sides. Which one do you follow. As you pointed well, a DD will benefit in deciding which strategy to follow. The decision will not necessarily turns out to be correct, but remember that when that decision was made, it was correct because you have done your own analysis and homework. Good trading every one. Best regards, Paul BTW: Many time you feel blessed. As I posted yesterday, my main account is frozen. I could not sell put on that account yesterday. I thank the Good Lord that I have closed over 120 put contracts last Monday.