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

To: SecularBull who wrote (6100)	4/6/2000 11:25:00 AM
From: edamo	Read Replies (2) \| Respond to of 8096

lof..."buying calls does not burden margin like selling puts does" didn't we(collectively) have this very same discussion on the dell thread a while back?.........yout statement wasn't valid then...and nothing has changed... calls are not marginable, so any buy reduces the cash/margin capacity....puts marginable at 20%....cash in from premiums increases capacity.... markets never move so fast as repair is not possible....far out expirations always worth more then closer in.... for the sake of the thread and for discussion, what has been your own personal experience and frequency of using repair strategies? if you are conversant in repairs you would grasp the point being made by paul. any fully leveraged account be in rife with short puts, long calls, or chunky style peanut butter would have a problem..........it's not what you are holding, it's the "fully leveraged" that is the culprit

To: SecularBull who wrote (6100)	4/6/2000 12:30:00 PM
From: PAL	Read Replies (1) \| Respond to of 8096

I see that edamo has eloquently responded to you. I invite you to read the Dell's thread postings from Chuzz, Rudedog, edamo and others about this topic. Additionally, Poet, who just returned from an excellent Option Seminar can probably explain to you better. Are selling puts and buying calls identical twins? No, they are paternal twins. The basic idea of being bullish is the same, but there are of course differences: selling puts generate money, buying calls is money outflow. Risk? There are risk of course. I am not suggesting that there is no risk. As a matter of fact you can be approved for call buying but not for selling puts. We are not saying that buying calls is a bad idea. Far from it. As a matter of fact, I am a synthetic long myself. Selling puts, yes, if you say it is crumbs, but you do it repeatedly. Taxman had a great success od buying call on a stock which was bought by CSCO. He hit a home run. How many homeruns happen in a ballgame? We prefer hits, many hits. So it is your preference. Just becuase we prefer certain strategies does not mean that we are against others, even if some like gold, it is OK with us.