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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 (1035)	1/25/2000 5:13:00 PM
From: David Lind	Read Replies (1) \| Respond to of 1235

Thanks, Tom. By 30-35% return, I am referring to the total account of T-Bills that are creating the margin, not including interest on the T-Bills themselves. I am leaving that for account growth, plus whatever I can generate in NPs beyond my monthly goal. My NP account will be for taking care of my trading itch and generating monthly cash. I am blessed with some nice Sep IRAs holding aggressive mutual funds. Nice not to have to worry about the taxes there. I just need to live another seven years to enjoy the gains. Hopefully using 50-60% of the margin generated by the T-Bills for writing puts isn't too aggressive. I agree with your point of view that aggressiveness is determined by the selection of trades. 50% of margin on dumb trades is high risk. But 50% on conservative OTM stuff should be fine so long as it is closely monitored and I avoid being put stock by rolling out and/or down. You agree? -David