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


To: steve mamus who wrote (3158)2/17/2000 9:30:00 PM
From: Jill  Read Replies (2) | Respond to of 8096
 
Okay...I hear you...and will be very interested if Ed will join in this discussion--Eduardo? Ya listening?--

It seems most of your moves are brilliant--in fact this last post of yours convinces me more than ever about GLW--I agree the split will come soon, & I think your point about PE is very well taken; maybe I'll just go long tomorrow...

Still I don't understand selling the puts on the uptick unless as the example I posted the other day, in RMBS, the volatility is so increased that put premiums INCREASE, thus you can still sell even tho it is not oversold

Ed was the one who first taught me about selling puts and you are instinctively reflecting what he says--cash in. I completely agree, why not use margin collateral to make $? And then spend it on stock. That's how Warren Buffet got rich, selling insurance and buying stock. On the other hand, taking a small portion of your portfolio and buying calls can really increase leverage...maybe someone else on this thread can give some good examples--when you start seeing the returns it's amazing.



To: steve mamus who wrote (3158)2/17/2000 9:59:00 PM
From: SecularBull  Respond to of 8096
 
Options is definitely a game that you have to feel comfortable about. You must also feel comfortable with the manner in which you participate. I completely understand your thoughts on patience and "people giv[ing] you money". The only downside is that you're not guaranteed to be in the position. The stock must be put to you.

Regards,

LoF