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To: Seeker of Truth who wrote (3648)	2/25/2000 9:05:00 PM
From: Jill	Read Replies (1) \| Respond to of 8096

I'll answer not for Poet but for myself. When you have a number of put positions open, even when it gets down to under a buck, they hold significant margin collateral. It's really annoying. I always close them under a buck and then open new positions. Its more profitable in the long run, by freeing up the extra margin collateral you can jump on the so-called 'anomalous' situations with high voltaility and oversold.

To: Seeker of Truth who wrote (3648)	2/26/2000 8:23:00 AM
From: Poet	Respond to of 8096

Hi Malcolm, That's a really good question, not bothersome at all. As usually, the writer in the family explained it well. I'll elaborate by saying that I sold my JDSU Mar 185 and 200 puts a few weeks ago. The Mar 185 premiums got below $1 yesterday, so my getting out of that trade freed me up to reposition myself for further upside in JDSU over the next few weeks into the split. By selling the Mar 260's and pocketing a $21 premium, I can now benefit from the rest of JDSU's run. I will also get creamed if the market and JDSU fall apart in the next few weeks, but I made sure I only sold enough puts that I could afford to buy if they were put to me. I'm in my JDSU collection stage. Another reason I'm being so aggressive in my put-selling here is that when I initially sold the 185's and 200's, I bought calls with the proceeds. I intend to exercise the calls (now DIM) and am trying to have this new put sale finance the exercise, so the shares may end up costing me nothing. (Except a wee bit of sweat. <g>)