Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: rkral who wrote (2770)	2/11/2000 9:59:00 AM
From: edamo	Respond to of 8096

ron....all sales, be they puts or covered calls, are limited in gain to the extent of the premium collected. you set the position with a satisfaction of what your max gain will be. you close your eyes to all other factors. should the stock rise rapidly(sold put) or fall(covered call) it allows you to cover the open position and reset at a higher/lower strike. if you are adept in this you do not lose "opportunity", as you are nimble enough to follow the momentum. all the while you are doing this, you have no cash out of pocket, it is a continual stream of cash in. it is not fool proof, experience dictates when a position should be closed at a loss or repaired.