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

To: TheHahnz who wrote (897)	1/23/2000 11:10:00 AM
From: taxman	Read Replies (2) \| Respond to of 1235

"selling...put...less risky than...purchase of ...stock" yes, you are correct as long as you can guarantee me that the stock cannot go below 135. in addition, you would have to guarantee me that i won't panic and close the position prior to expiration because of a sudden drop in the stock or a change in market psychology. on the other hand, the stock could go to 300 and then you miss out on extra 113 point move (138 less 25). not a great result for the put seller. regards