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


To: mtnlady who wrote (7104)5/1/2000 9:07:00 AM
From: Poet  Respond to of 8096
 
Mtn lady,

Not to worry, it's like learning another language.

When you're bullish on a stock, you buy calls.
When you're bearish, you buy puts.
When you own the stock andsee it bumping up against resistance and want some income, you sell covered calls (a/k/a "writing" cc's)

When you're bullish on a stock you can also sell naked puts (a/k/a writing naked puts, also selling short puts). This is what I was blathering about last night. <gggg>



To: mtnlady who wrote (7104)5/1/2000 11:47:00 AM
From: Jill  Respond to of 8096
 
Lots of good responses on this thread, and I want to add one experiential thing: options don't decay smoothly. Each new month, after expiry, they drop. And there are other factors--they can trade somewhat independently of the stock especially in a fast moving market and a popular strike price--dilution (stock split) can affect them, and so on.