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To: RRRoarr who wrote (15368)1/17/2000 5:20:00 AM
From: Seeker of Truth  Read Replies (1) | Respond to of 54805
 
By selling puts you are basically going into a small scale but profitable insurance business. However, all insurance businesses lose capital some of the time, in this case when the put is exercised and you have to put up the money and afterwards the stock continues to decline, while you are owning it. You shouldn't neglect the certainty that this will happen once in a while. But on the whole it should be a profitable business, so I think.