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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?

To: OX who wrote (1159)	4/9/2000 10:38:00 PM
From: Tom K.	Read Replies (1) \| Respond to of 1235

...wouldn't you gain more prems doing so each month than once w/ LEAPS.... Yes, but I don't look at it as either one or the other. My basic approach is the short term trades, however, just like when you buy a few extra light bulbs for when you need them, that's how I use LEAP PUTs. Just a little extra for when it's needed to maintain my cash flow targets. And only when I feel the reserves need to be stocked. No science to the approach. How about QCOM Jan01 100 for 10. Just a little money on the shelf. If it drops, roll to Jan02. By Jan01 the Jan03 will be available. Seems pretty safe to me. By the way, PSFT is not what I'd regard as a quality issue.... no earnings to speak of compared to what's available. Tom