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

To: taxman who wrote (5649)	3/27/2000 9:30:00 PM
From: Kayaker	Read Replies (1) \| Respond to of 8096

"short puts...will be low risk" yes, lower downside risk than owning the stock, but at what a price. you give up almost all of the upside. same is true of covered calls. Sure, but it depends on how much money you have, how much you need, and what you want to do with your life. With 4-5% interest and some conservative puts I'll easily make $500,000 a year. Why would I want to sit and stare at a computer monitor all day?

To: taxman who wrote (5649)	3/27/2000 10:27:00 PM
From: edamo	Read Replies (1) \| Respond to of 8096

taxman..."you give up almost all of the upside" and if there is no upside? what do you give up? "at what price".....an infinite return against your capacity, as no "loss of investment" cost is factored in... the more you post the less you show of your depth of understanding of options. taxman.....do you truly believe, as you frequently post, that there always is an upside, and no premium is overpriced or expensive?.....or are you kidding us?

To: taxman who wrote (5649)	3/28/2000 11:24:00 AM
From: Seldom_Blue	Read Replies (2) \| Respond to of 8096

Here is a good write up on Yahoo board. clubs.yahoo.com message number 254 Here it is. Of course it looks like some kind of come on for something. But his point is valid. The mistake that many would-be-successful options players make is that they attempt to use options as a way to score huge gains, while utilizing only a small amount of money. As is always the case with any method that promises the world without much to lose, that approach is a trap. The well-intentioned souls who think that options are a cheap way to big gains are the dreamers that will make your and my profits possible. They are the gamblers who still believe that you can get a lot, while sacrificing little, and in so doing perpetually add to our coffers. They are among the many who have bought into the notion that one can make a big score, while putting close to nothing in the till. And it is on their backs that the astute options players can build fortunes. Sad? You bet. But oh so very true. And let me make the point here and now that the bulk of these gamblers are the buyers of options, not the sellers (writers). And therein lies the biggest mistake of all. It is our job, no, it is our duty to make you aware that options are largely a game of Hope. And if one would be profitable at this most viscous game we call Options, one must be the seller of hope, not the buyer of hope. To those with eyes, let him see; and to those with ears, let him hear. Because in that last statement lies the master key to winning at the game of Options. But if you missed it, do not despair. We are about to show you how to stay on the winning side of the options game 85% of the time. So sit back, relax and enjoy