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

To: Poet who wrote (7083)	4/30/2000 7:49:00 PM
From: Jill	Read Replies (1) \| Respond to of 8096

Wow, that is a very thorough post. Again, I'll be the mouthpiece for further-out options. I had set April, May and June open put positions while the NAZ started retreating. The Aprils were absolutely unrecoverable--I had to buy them back at significant loss. The May's, on BRCM and SEBL, seem fine at this point, strike prices were 150 on BRCM and 100 on SEBL. If they'd have been April, I would've had to buy them back too. The June's on JDSU, set awhile back, were 100 and 110. Again, shorter term I'd have been in trouble. I tie up more margin for longer, and at this point there's a decent chance we know what the bottom is, even if we retrace. Since we're on the possible upswing of a recovery, I'd wait to sell any puts right now, wouldn't you? Except maybe GMST as you note it probably won't go much lower. And there's something to be said for steve mamus' approach which is basically to sell leap puts, and avoid all short-term consequences. (Altho he even got put recently in spite of them being leaps)

To: Poet who wrote (7083)	5/1/2000 12:16:00 AM
From: mtnlady	Read Replies (2) \| Respond to of 8096

Thanks Poet for the suggestion on writing puts but I don't think I'm there yet. I'm still trying to figure out calls! Perhaps I phrased my question wrong - it surely wouldn't be the first time! Basically I was saying that.. in my mythical world .. I held the price of NTAP constant at some value.. say $90 and only changed the time frame. So we only had to deal with the time decay of the calls price and not the volitility of the stock itself. So in my example I had a call out there - say SEPT100's and NTAP holding steady at $90 a share. How much, approx., would the calls I would sell be worth per share now, a month from now, two months from now - with the only changing ingrediant being the time factor. Sorry if I didn't phrase the question correctly!