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

To: Len who wrote (3949)	2/29/2000 8:23:00 PM
From: Jill	Respond to of 8096

Okay...Would you be comfortable owning GMST at approximately 71? And you have the capacity to be put however many contracts (100 shares each) you are writing? If so, it's a bit aggressive, but... I tend to consider writing a little further out (April often a bad month for tech) and lower strike. If this is your first attempt, the point is to get familiar with it rather than to bag the biggest buck. I always try to write puts BELOW the trading range unless its a leap. There has been some aggressive put selling here which I admire, but these are mainly seasoned players. I just looked at the chart. So far 61 has been the occasional low, with a trendline in the upper 60s and low 70s. Thus to play it quite safe, 60s are below the last 2 1/2 months. 65s are below most of the tradin range except for the occasional dip. If yoru intention is solely to pocket premium, the above type of approach may be safer. I just looked at put open interest and I'm not surprised to see May 60s and 65s are the most popular. Whatcha think?