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

To: freeus who wrote (7805)	5/18/2000 10:18:00 PM
From: Tom K.	Read Replies (1) \| Respond to of 8096

The problem is options ...I sold puts on stocks I thought would never sink to the levels where I'd have to actually purchase them. Next time you do a PUT, check into some of the exit strategies that are available before allowing yourself to take the stock. For example.... I had Jan01 LEAPs on QCOM at 150. I've lost my confidence that the market will rally, so I bought back at a loss and sold twice as many of the Jan01 100's. I'm open to the possibility of having to take more shares if put, but the price is now more reasonable. I was also able to do this with a net in the trade that is on the plus side. Of course another technique is to take the small loss and simply get out when you see the stock start dropping..... not easy to do, but it sounds good. The problem is not with options..... the problem is with our skill in using them well..... not easy.... still learning. Tom