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

To: Tom K. who wrote (914)	1/23/2000 10:40:00 PM
From: tyc:>	Read Replies (1) \| Respond to of 1235

The 'repair tactics' you outlined appear to indicate simply waiting for expiry week. If the option is in-the-money you have the choice of allowing the stock to be put to you or rolling the put down or out. That sounds good to me. So long as a person doesn't panic and close out a "threatened" position but confidently waits for the market to recover FINE ! Does it always recover ? It is the long slow declines that you have to worry about. You confidently wait for the market to rally to take away the now covered-called stock that was put to you. But the rally never comes and when it does it is short lived. So the calls again expire out of the money or the puts expire in the money. Finally you realise that it's no use selling calls at this low level, so you just sit and hold the stock. Around you, people whose stock was not encumbered by calls got out months ago. I've been through it with covered calls. Beware of the bear.