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

To: taxman who wrote (5375)	3/21/2000 2:31:00 PM
From: the options strategist	Respond to of 8096

Person understood that she could lose all. That is the risk we all take regardless of our portfolio. BUT, this was her decision, not mine. I gave her options and risk and she made her own decisions. This is what it is about. She wanted to experience selling puts and wants to specialize in it and I suggested she start with a small account to get the feel (after she had paper traded). My point is that in her plan and exit strategy, a loss of $1.00 was where she had planned to exit. Obviously if the stock tanked below that she would go with another strategy. Also understand that we were not dealing with a stock that has a recent history or behavior of dropping 20 pt. She has done her "what ifs" and was very well prepared for what ever may have happened. I think the point is being lost here. Point being with a good plan and the right stock, i.e. not one that is going to normally rise or drop 20 pts. and an understanding that it is all a risk, one can trade options with a small account. This is how many people get large accounts. Knowledge of risk and money management is the key! jj