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

To: Dr. Id who wrote (5529)	3/26/2000 12:12:00 PM
From: edamo	Read Replies (1) \| Respond to of 8096

jdb....short put repair strategy general comments and questions you must ask yourself... has there been a fundamental change in the underlying? do you still have desire/capacity to own/except assignment? if the stock is fairly close to the option strike, i normally hold to a date close to expiration to allow time value to erode. if the stock has dropped substantially with no merit in the price action, i would consider rolling out to a further expiration, (even a leap) at the same or lower strike to recapture time and perhaps excess implied volatility. you may find a much lower strike leap that will match your current premium buy back. if the stock reverses trend, then the lower strike leap will erode swiftly, giving you a strong probability of no loss to gain on the original position. i do not follow elon, but a quick glimpse indicates perhaps some slight downside before trend reversal. hope this helps, think it through, affirm your strategy as it relates to the underlying....