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

To: Poet who wrote (7056)	4/29/2000 11:17:00 AM
From: bobkansas	Respond to of 8096

Thanks for the posting by you and others (e.g. Jill, Uncle Frank,...) on this thread. I have been writing lots of one month out covered calls over the past 40 days (also buying many of them back and then rewriting them at a different strike price). I want income so my wife can cut back at her job. She is a LCSW (social worker in private practice) and fairly exhausted from treating spouses and children as to all sorts of mental problems. Managed care is a big pain and could care less about people's mental health. Sorry, I am getting way off topic. Also, this past week I have bought and sold my first call with success. Used call options on NTAP (a great company that I am long in, to some short term regret). I regularly follow the Gorillas thread and knew of this one but did not understand the language involved in trading options. I am amazed at how it is all starting to make sense and cent ($). <g> Buying and selling options makes the language surrounding options come alive. Very interesting to see the greed and fear on both sides of the option transactions. For example, writing covered calls for 5 to 15 percent a month (not too greedy imo) v. buying calls for possible hundreds of percent return or perhaps getting next to nothing back (very greedy). I can tell that one can make money buying on other people's fear (i.e. near the bottom) and selling on other people's greed (i.e. near the top). The key is to be detached...objective...like an out of body experience [I suppose] so that you are not stuck in the same mind set as "others". I have learned a lot about mass psychology by being in the market. Again, thanks to all of the regular posters here. Living and learning... Best regards, Bob