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

To: Poet who wrote (3796)	2/28/2000 10:01:00 AM
From: edamo	Respond to of 8096

poet...."conservatism" basically you buy a portion of a grouping of government backed mortgages (gnma), as safe as treasuries....the higher the current mortgage rate, the better rate for new issues, or discounts to lower rate older issues. the concern of fixed income investors is that as rates drop the premium is returned(gnma like a real mortgage you might hold as it returns interest and varied premium monthly)due to refinancing to lower rates. if you are fixed income you then must reinvest in a lower instrument, but if you are an equity investor it doesn't matter as you have numerous investment choices... you can't lose with a ginnie mae, only thing is that it can amortize quickly in a dropping interest rate environment...still get all the principle back...

To: Poet who wrote (3796)	2/28/2000 10:41:00 AM
From: Len	Read Replies (1) \| Respond to of 8096

Poet, I just dabbled in my first option trade. I sold a few covered calls in EMC. I noticed, though, that my broker considered this a short sale and listed the funds as a liability. Is this correct? Shouldn't the funds be an asset and available? TIA, Len

To: Poet who wrote (3796)	2/28/2000 10:57:00 AM
From: Cosmo Daisey	Read Replies (1) \| Respond to of 8096

Poet, Low maintenence is the key. I don't have a problem making short term profits. The Q's are almost free money although you need a good portfolio to trade them. I sold 1000 QQQ short this AM @207 5/8 and covered @ 204 3/8. I am watching to re-enter long when I detect a turn. Watch the Q's and the Comp for the signal. I was long 2000 @ 198, sold @ 205, went to Ireland, came back to 211. No open position while I was away. However, I don't want to sit in front of the screen all day. cdaisey@gotta-get-out-more.com