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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: IndexTrader who wrote (542)	3/22/2000 6:12:00 PM
From: Jack of All Trades	Read Replies (1) \| Respond to of 33421

Suzan, Just remember that shorting options has more risk than buying them... You can only make 100% of what you sold, where as if the trade goes wrong it may cost you XXXX% to buy them back...

To: IndexTrader who wrote (542)	3/22/2000 6:15:00 PM
From: GROUND ZERO™	Respond to of 33421

You just let the options expire, but when the premiums get down to almost nothing I like to cover the short before the market goes nuts and inflates the premiums again...<g> for myself this afternoon I shorted six June 1510 puts for about 57.50 points each... that's 345.00 SP points which means the SP's would have to rally from 1500 in the cash all the way to over 1845.00 between now and June before being long the contract would be more profitable..... I could just sit on these short puts and wait for about $86,250 in premiums to expire worthless between now and June expiration.... I'm a patient guy.....<g> you can do this four times a year, and with a lot more than just six.....<g> GZ