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To: SecularBull who wrote (2619)	2/9/2000 9:01:00 PM
From: PAL	Read Replies (1) \| Respond to of 8096

I ended up buying the CREE puts back for a fraction to close the position and free-up margin. In that case, it did not work to have it put to me, but I still got to pocket a lot of premium. Although I am do not follow CREE, I think you do the right thing. As ed and I have been saying: the primary objective of selling put is to collect premium on an ongoing basis . One of the danger in selling put, i.e. you will realize after doing hundreds of time is the perception that it is easy money. Hence, one tends to pick a strike price ITM or ITM or slightly OTM with the self reasoning: I don't mind to be assigned. Be aware that if you want to be assigned, then you have to do the above. There are two things going against you when you sell ITM or DITM puts: a. the premium centers mostly on the intrinsic value b. the market dictates when you buy the stock you don't know what the market price at that time (of course you are assigned the strike price, but more importantly what is the market price when you are assigned?) I prefer to control my own destiny by buying when I want to buy and paying the price I want to pay. Selling SOTM puts is not as risky, but I am content with the steady stream of cash coming in. Just like a turtle. Hope that helps. Paul