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Pastimes : G&K Investing for Curmudgeons -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (2136)	5/11/2000 1:49:00 PM
From: Dr. Id	Respond to of 22706

Tekboy obviously isn't. Message 13666251 cuf@hegottheputzpartright.com Well, I've learned not to sell puts in a market that's waiting to correct. As for my GMST that was just put to me (at 95!), I was prepared to buy it outright at that point that I sold the puts...had I bought it then, I'd have paid 95...with the puts, my cost was about 87...if I'd had foresight and waited, I could have bought it at 35. But didn't you buy some at 95 at about the same time? I still think that the put selling strategy makes some sense in terms of either generating income or buying a stock at a discount from the present price (at the time of the put sale). The mistakes I've made recently were to do it in a market that was too topped out, and in one case for a stock that I wasn't sure that I wanted to own (ELON). So, I'm not sure if I've learned my lesson! (I am fairly sure that I'd probably just be better off buying and holding...) DrId@evenconfusedmyself.com

To: Uncle Frank who wrote (2136)	5/11/2000 3:12:00 PM
From: tekboy	Read Replies (1) \| Respond to of 22706

<<you and Tekboy are two of the brightest people on SI. Now let's see if you're smart enough to avoid making the same mistakes again. Tekboy obviously isn't.>> Ahem. My earlier mistake was not in buying naked calls in the first place, but in failing to sell them at the right time and take profits when I had them. (Well, also using too much margin, but that's a separate question.) Both of the new plays were bought at striking lows for the stocks in question; both were ~ATM rather than OTM; and both were bought with plenty of time (6-8 mos.) left for the stocks to come back up in. ctb/A@notsomistaken,eh?.com