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To: edamo who wrote (3482)	2/23/2000 12:16:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

OK, I think I understand a bit better. It makes sense to close out the put sale positions when the premiums are under a dollar (that neighborhood, anyway) and move on to the next month. I've done nicely with these JDSU puts and really owe it to you and your patient explanations. I'm still fuzzy on your expiration scalps. When you have time, or one comes up, would you mind posting it?

To: edamo who wrote (3482)	2/23/2000 9:55:00 PM
From: steve mamus	Respond to of 8096

excellent points DoK

To: edamo who wrote (3482)	2/24/2000 4:09:00 AM
From: Uncertain Walker	Read Replies (4) \| Respond to of 8096

edamo: Re: "70625 prem against an assignable 980k stock....return of 7% against capacity......and in reality an infinite return, as it is not a tangible use of cash!!!! just capacity.....sort of like lending someone your line of credit for a fee, without ever accessing it!!!!" Selling puts is like selling insurance. When time is good, you pocket the premium. However, when there is a catastrophe in the market or an individual stock, the risk can be overwhelming, especially when heavily leveraged. It's difficult to control this risk. When the likes of LU, DELL, and VISX announced unexpected bad news, their stock can tumble an easy 30%. One may not have time to repair the put-writing strategy. How do you prepare for this scenario which does have a finite probability of occurrence in any company's history? I don't think TA can predict this kind of event.