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

To: Gregory who wrote (3559)	2/24/2000 8:54:00 PM
From: steve mamus	Respond to of 8096

I am pretty simple minded. I like the idea in general of writing puts at a strike price way below the current price of the common. At least 25% below is nice because by the time you write a long put for 1/02 in particular, you are essentially paying 50 cents on the dollar if the stock is ever put to you. Disadvantages you need alot of margin with deep pockets. Another disadvantage you better pick a strong stock or you will be buried. I find that there is less of a tendency to worry about my long positions on a day to day basis. A number of my friends have urged me to liquidate all of my positions, take the money, put it in CD's and live happily ever after. This has to do with the large scores I lucked into the last 2 years. As an alternative to money market funds I have a trading acct which is essentially all cash and a ver large # of contracts (naked puts). At any given time I am sitting on approximately 500 contracts in my personal trading accts. I trade every day. I esp look for stocks that are devestated on any given day for no rational reason. For a strong company these are perfect prey. Recent egs include GLW and TQNT 2 days ago. I play options (1) to manage portfoli risk (2) to generate income in a very aggressive fashion and (3) to maintain liquidity, Dok