Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gregory who wrote (5095)	3/16/2000 8:40:00 AM
From: Jill	Read Replies (2) \| Respond to of 8096

One of ed (edamo's) picks wasin the $20, I think it was svgi. That might be a good stock to look at. With $10,000 equity you might want to wait before selling puts (I'm surprised they would even enable you to do so). You really don't want to sell puts unless you have the capacity to be "put" i.e. buy the underlying stock, and also have some ample margin, i.e. buffer, in case of stock market downturn. So $10K does not really allow that.

To: Gregory who wrote (5095)	3/16/2000 9:49:00 PM
From: steve mamus	Respond to of 8096

IMHO I think it is unwise to write puts with equity of 10,000. Even with a good stock, market conditions are wild enough that you could really get hurt. Last year I faced a similar question with my 3 year old daughter. I invested 10,000 dollars for her in a single stock CSCO. I then took profits and put it all into qcom. I then added another 10,000 dollars and I think she has north of 40K in about a year. IMHO would be wiser to perhaps pick 1-2 strong stocks and buy the common. Put selling would be unwise IMHO. Rule #1 is protect capital. I also would be quite surprised if a broker let you sell any puts with 10K equity - I think it would be viewed as reckless. DoK