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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: SecularBull who wrote (2601)	2/9/2000 3:10:00 PM
From: PAL	Read Replies (1) \| Respond to of 8096

Lof: Each option has the advantanges and disadvantages. That depends on the need. For example: I like to sell s/t puts and use the proceed to buy leaps calls. this is a variation of synthetic long. the stock involved is not necessarily the same stock. when i buy calls i prefer using opm. here is an example of my recent trades: 12/6/99 sold several of ocli feb/240 puts at 40 7/8 (now 5/8) use the proceeds to buy csco jan01/100 calls at 14 7/8 (now around 40). while the ocli puts will become worthless in 10 days, thus freeing margin, and have more capacity to sell more puts, the csco leaps keep climbing, even split 2:1. those calls are free to me. btw ocli was converted into jdsu on feb 4. paul

To: SecularBull who wrote (2601)	2/9/2000 4:03:00 PM
From: Jill	Read Replies (2) \| Respond to of 8096

A side note on put selling; I sold some June JDSU 200s today. That's because, as with QCOM when it was in its most volatile up/down spiral, I feel confident JDSU will soon make a run (perhaps very soon, i.e. pre split), and even those Junes will deteriorate rapidly, and I can buy them back for much cheaper, pocketing good gains. Meanwhile, I must say I disagree with a few people here about the end goal of put selling. I think it is flexible. Pocketing premium is one good deal, but sometimes you might also want to be put, as LoF you said you sold CREE 110s wanting to be put (was that the right strike I recall?). In such a case one will tend to pick a strike that is riskier, i.e. higher than if one wanted to play it very safe, and thus sell puts below a firm trading range. Jill