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

To: Jeffry K. Smith who wrote (3534)	2/24/2000 3:38:00 PM
From: David Lind	Read Replies (1) \| Respond to of 8096

Jeffrey, regarding account equity, I sell options against a trading account of 3-6 month T-Bills. I can't trade options full time and worry about being long stock or funds in the same account. Too complicated. That's also why I don't care for covered calls of any variety. Too many variables. With regard to rate of return, that is a very personal measure from trader to trader, wouldn't you agree? I have a set dollar amount I like to return every month so that I can keep German cars in my garage and a nice roof over my head. And I look at total premiums of each trade as a ratio of the margin in use for the trade, just to make sure it is worth the trouble. I recently read in a text - and I can't recall now where it was - that a careful study of investment strategies showed that conservatively selling options against an account of T-Bills (6 months now 6%), handily beat a program of being long stock. Of course, it would be nearly impossible to quantify that with all the possible variables, but my gut tells me that this is the case. Thanks for your response. -David