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

To: Gregory who wrote (5672)	3/28/2000 11:46:00 AM
From: PAL	Read Replies (3) \| Respond to of 8096

Greg: There are many ways to make money with options. Each approach has its pros and cons. Just like in baseball: the team can score a run from hitting singles, doubles, triples, homeruns, bunts, walks, sacrifice fly. All depends upon the situation, and none should be dismissed as bad strategy. If you like to generate cash from your investment, I understand that Voltaire if the expert in selling CC. I believe that he illustrated a situation of helping a lady in distress by using her equity of $ 45K, use margin to buy $ 75K worth of ELON, sell April calls to get $ 18,900 profit when called, giving a return of 42% in about one month. Of course there is a risk if the stock goes south and there is a margin call. The above illustrates that you cannot dismiss selling CC as a bad strategy. I suggest that you go to Voltaire's thread and reap his wisdom. I have not followed his strategy, but I have a lot of respect for him, not just as an astute investor, but as a generous human being who helps the less fortunates. Another approach to generate cash is selling naked puts. If you go back a few hundres posts on this thread and read edamo's you will find a profitable way to utilize your assets. Rather just sitting there under LTBH, you use margin capacity to get cash. Of course there is in this approach but if you carefully choose the stock and strike price, you can reap cash much much much better than what bonds pay. While Voltaire is the person on CC, edamo is the person you should listen for his advice. Edamo's approach has been successfully copied by people like poet and jill who in turn have influenced steve manus to great great reward, much more so than his medical practice. ed tells you when he opens and closes his position. Seldom Blue and Jerry Miller are among others who are knowledgable in this field. There are others too many to mention so the the list of these names is not complete. Again, some will pooh pooh the idea of selling naked puts, but if you dismiss this strategy, you are rejecteing one of the profitable approach in making money. In short, this approach is just like selling insurance. Who is richer: the insurance company or the people who buys insurance? As for me, I learn a lot from others on this thread, and would like to congratulate and thank those who have made valuable contributions. Since I do have commitmentts at avrious time with my charity projects which I enjoy and allows me to communicate with people ranging from the homelss to CEO, I am usually in and out, and might not even post for days. Good Luck to you which approach makes you comfortable. Just remember that homerun is not the only way to score a run, so don't let anyone tells you differently. Best regards Paul