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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (872)	1/22/2000 12:21:00 PM
From: David Lind	Respond to of 1235

Wow, 3-4 pts per month for a single position? That's too hot for me at this point. My approach is to stay way OTM and be happy with a solid point or so a month on each trade until I get the lay of the land. My spreadsheets tell me I can pay my way on that approach, and still retain some margin safety, so we'll see how it goes. But always very interesting to hear other people's strategies. That's what makes this such a great numbers game. Infinitely more interesting - and I feel in many ways safer - than being long stock. Look at it this way. If someone told you that you could buy a good stock, and be assured a profit even if the stock dropped 10% - and possibly double your profit if the stock rose - and on top of that they would even give you cash right now for making the trade - wouldn't that sound like a good deal? Um, excuse me. But isn't that the profile of writing an OTM put in a well planned trade? -David