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

To: KFE who wrote (5685)	3/28/2000 5:02:00 PM
From: Jeffry K. Smith	Read Replies (1) \| Respond to of 8096

Ken, I have seen this strategy: "the naked put will give you a higher rate of return and can be boosted if written against T-Bills in the account" mentioned in a number of places, but not where it was ever described well enough for me to understand it. Would you mind taking a crack at doing so? I am approved for Level 3. Thank you, Jeff Smith

To: KFE who wrote (5685)	3/28/2000 5:41:00 PM
From: edamo	Respond to of 8096

kfe...appreciate your input and comments. my experience with options goes back to 1971, i believe prior to the cboe secondary market/clearing house....(correct me if i'm wrong). i'm a firm believer that one must be understanding of all the basics of options and the various simplistic strategies. too easy for a call buyer in a mega bull market to truly get warm and fuzzy about how easy it is and what great leverage one gets... if you referred to my 90% comment, it was not intended to state that this is the percentage of all options that expire worthless, more to my individual positions that return a profit. the majority of the positions are set with at or below market strikes in put sales. one must be comfortable with their selected option strategy, understand not just "risk", but their own "risk tolerance and aversion"....no need to constantly negate other strategies, for one day when all is not so euphoric, they may come in handy... thanks again...ed a.

To: KFE who wrote (5685)	3/28/2000 8:30:00 PM
From: SecularBull	Respond to of 8096

Ken, the bulk of my options returns are the result of only buying calls. I have had good experience with this consistently for four years. People lose money buying calls more often than not because they buy OTM calls with too little time to expiration (trying to hit the ball out of the park). I go out as far as possible (usually), and will buy ATM or ITM calls. LoF