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To: SecularBull who wrote (6103)	4/6/2000 1:24:00 PM
From: edamo	Read Replies (3) \| Respond to of 8096

lof...."long calls, short puts, margin impact".... "puts are the same as buying calls"..... "from that point on owning a call does not affect margin" great deal of truth in both statements....but only if you have the same vantage point and compare the two strategies and reasoning in the same way. you have cash, you buy calls....only thing that can happen is make or lose money. calls drop in price, portfolio value drops, no chance of margin. many believe and will state that all short puts are "naked"....not really, if the position of assignment is fully cash secured then they are not "naked" but covered"....do you now see the similarities......put prem can increase, but your liability is based on the assignable strike, no margin call possible, as you are fully covered...risk is identical to an unmargined long position with an adjusted price of strike less premium....has intrinsic value as if is fully paid for...so in essence you have something of value with an assigned cash backed put, whereas you can lose all with a total long call portfolio. you cash secure, and repairs are to your benefit, especially in a fast moving market, where you can capture a temporary inflation of implied volatility. "cash is king".....as long as you can pay for what you are liable for, not even the "reg t" man can take it from you... you may miss the upside, but you guarantee a constant revenue stream of at least 25-30% per annum...and if you apply the "rule of 72"...you double with no real stress or hard work every three years or so....better return then a t-bill(which you get as an enhancement in a cash secured selling strategy) depends where you are in your life, what you attempt to achieve and the risk tolerance/ aversion you have established in your life... to sum it up.....everybody's eyes see things differently, but all will swear that they are looking at the same thing....absolute black may appear gray to me, black to you and the reality is how it is perceived..... perception is reality in the markets, nothing tangible only what the trading day makes....