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To: TRCM who wrote (153299)2/8/2000 2:58:00 PM
From: SecularBull  Respond to of 176387
 
Why did you post that to me? Please go away.



To: TRCM who wrote (153299)2/8/2000 5:20:00 PM
From: D. Swiss  Respond to of 176387
 
TRCM, I said it is a conservative options strategy if you are selling out-of-the-money puts. In my example if you sell 3/00 35's and the stock is at $37 and you get a $2 premium, the stock has to drop almost 11% from an already depressed level before you get hurt. That is why I say it is a conservative options strategy (you already have a running head start with the 11% cushion). The other caveat I said was that you have to feel that the stock is closer to a bottom than a top. Talk to edamo and rudedog, they are the experts.

:o)

Drew