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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (1340)	4/7/2000 8:49:00 PM
From: David Lind	Read Replies (1) \| Respond to of 2317

Ox, you are absolutely correct. Because of my earlier success, I did not have a specific exit plan, did not fully appreciate the risk, and violated my own stop rules when the volatility exploded the premie values before I could take action. I mean, who wants to take a 15K loss on a 1K credit? But because one of my own priorities is conservation of capital, I am concerned that even with a basket of well written puts on great stocks, when the market itself falls away there is little action that can be taken until it is too late. Had this correction happened the day of expiration - and lets face it, there is always that possibility - then a lot of traders could be very badly hurt. The good news is that I learned invaluable lessons and survived. I hope others came out as cleanly. -David