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

To: Kayaker who wrote (5653)	3/27/2000 10:44:00 PM
From: edamo	Respond to of 8096

kayaker...."stupid or smart" you understand, taxman doesn't....there always exists the other side of the trade, and most times it's not the retail buyer like taxman. 4% per month conservative return, 10-12% per month aggressive return with 90% success rate if position properly. actual return even quoted in the "mcmillan bible" is "infinite", as you do not lose the investment value of your cash or equities while the position is open. one week return (pre split)...20 csco april 125 contracts at 5.625, closed at .5.....over 10k profit....stock at 130+, with a trend reversal beginning....very low risk, typical position with a quality stock that historically has more upside then downside volatile...

To: Kayaker who wrote (5653)	3/27/2000 10:48:00 PM
From: taxman	Respond to of 8096

thanks. for every seller there is a buyer even if it is a specialist. excerpt from the cboe web page follows: regards Options are contracts in which the terms of the contract are standardized and give the buyer the right, but not the obligation, to buy or sell a particular asset (e.g., the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration). To the buyer, an equity call option normally represents the right to buy 100 shares of underlying stock, whereas an equity put option normally represents the right to sell 100 shares of underlying stock. The seller of an option is obligated to perform according to the terms of the options contract-selling the stock at the contracted price (the strike price) for a call seller, or purchasing it for a put seller-if the option is exercised by the buyer. All option contracts trade on U.S. securities exchanges are issued, guaranteed and cleared by the Options Clearing Corporation (OCC). OCC is a registered clearing corporation with the SEC and has received 'AAA' credit rating form Standard & Poor's Corporation. The 'AAA' credit rating corresponds to OCC's ability to fulfill its obligations as counter-party for options trades.