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

To: SecularBull who wrote (5999)	4/4/2000 8:30:00 PM
From: Poet	Read Replies (2) \| Respond to of 8096

Argh! I'm not a great advocate of triangulation, so let's just speak for ourselves. I agree that the risk in buying a call is limited to the price of the call, where the risk in selling a put can be higher, IF you are not willing or able to be put the stock and IF you are unwilling or unable to execute a repair strategy. In very volatile times like these, when deltas are terribly inflated, selling options takes advantage of both the inflated delta and the inevitable time decay of the option. I'm not against buying calls, Loffy, I'm just increasingly aware of delta and theta and less willing to finance all of my options positions. by incorporating option sales, you can have "the house" finance your trade. It's a more cost-effective and elegant way to trade.

To: SecularBull who wrote (5999)	4/4/2000 10:03:00 PM
From: DM	Read Replies (1) \| Respond to of 8096

"buying calls has lower potential risk than selling puts" To some degree yes, however when you sell puts you have 3 ways to make money, if the stock goes up, stays the same, or even goes down some, (time decay works for you and you can roll out to another month if need to) When you buy a call, time works against you, you have to be right on your entry, and the direction. Lots of folks with calls out for April (earnings run) that will run out of time, even if the stock does rebound. Of course if you have longer term calls, more time to recover from a loss. This is just the way I look at both stragtegies, everyone must do what works best for them. DM