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

To: Bridge Player who wrote (1408)	1/20/2000 11:23:00 PM
From: KFE	Read Replies (2) \| Respond to of 8096

Bridge Player, my wife does a lot of naked put writing. And then, on those occasions when she is put the stock, she does the other side and writes covered calls. A little selective editing on that paragraph and I could get you into a lot of trouble with your wife. I used to do primarily naked puts and calls using T Bills as collateral but I am no longer willing to devote the time necessary to monitor and manage the positions. Now the majority of my option trades are OTM credit spreads. When I wrote naked puts they were usually OTM and I would never let them get to the point where I would be put the stock. IMHO if you let the trade get to the point that you are put the stock then it is probably time to admit that you have made a mistake about the direction of the stock and move on. Sharp sell-offs have been buying opportunities for many, many years now. IMO that will not continue to be the case for too much longer. I couldn't agree more but I have been thinking that for awhile now. Regards, Ken