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

To: Dr. Id who wrote (6193)	4/8/2000 1:33:00 PM
From: Jill	Read Replies (1) \| Respond to of 8096

I agree with you there. I don't sell large blocks of puts. Those who do simply have the capacity to be put the entire block or reposition if they need to. Ed and Teflon for instance will sell blocks of 20 30 or 40 puts. It's been a completely successful strategy for me except for AFFX, and the truth is, I did not want AFFX at 240. So that violates a rule: I really was going only for the premium. I believe people who bought ELON at the high and wrote cc were also going only for the premium. That's really risky because these speculative stock will drop faster, further, and recover less quickly than something like DELL, MSFT, or CSCO. Even in its worst case scenario MSFT goes up intot he 100s from the 90s then back down to the high 80s. That's nothing compared to, say an ICGE, which goes from 220 to 70, or AFFX, which went from 320 to 120. So although this is a market of perception and psychology, fundamentals do still count for something. Of course its very tempting to play these speculative stocks asthe gains can be enormous. I personally think of that as my gambling $ and if I lose a fewK here and there, I'm okay with it. I also agree, we understand taxman's point. For the time being it would be nice to discuss the strategies we're actually using on speciic plays. I think we've worn the "philosophy" discussion a bit thin.