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


To: Jill who wrote (7570)5/5/2000 4:23:00 PM
From: Bridge Player  Read Replies (1) | Respond to of 8096
 
<<it depends how many open positions you have, how much margin that frees up. It may not always be incremental in one's account.>>

<< I'm not sure where the confusion is, I hope I can clarify, once more: when I've sold puts and the premiums have deflated to under a buck, I'll nearly
always buy them to close. Freeing up margin capacity--sometimes significant--for other purposes.

SOmetimes I'll also just trade them--buy them back for 50% less.

Or I should say--I did so in the past. I'm less enamored of the put selling strategy now. >>

I have copied both the part of your prior post that I am asking about, as well as the complete text of the post to which I am responding now.

My question is a simple one: What did you mean by the statement: "it may not always be incremental in one's account"? Neither of your last two answers have addressed that question.

BP



To: Jill who wrote (7570)5/5/2000 6:03:00 PM
From: Tom K.  Read Replies (1) | Respond to of 8096
 
...I'm less enamored of the put selling strategy now...

Is that because you found something wrong with the strategy, or is it because of how you applied it?

I'm interested in your view because I've been using this strategy for several years and have found it to be the best option strategy for consistent profits in a neutral to bull market..... why are you now less enamored with this strategy?

Thanks,

Tom