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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (81601)	6/12/2000 4:24:00 PM
From: Joan Osland Graffius	Respond to of 132070

Wayne, On the butterfly's I look for options where I only loose the income from the selling position, so in that case yes you can loose capital, but at the bottom line you do not have to loose your original capital. I look at it as I never had the capital until the spread is completed. Some time ago MB went through a discussion of not owning the stock, just putting up capital in a money market or some other liquid instrument. I look at it as I never had the capital until the spread is completed. BTW, I paper traded MB's idea for a while until I felt comfortable. I worked hard on identifying what could go wrong. <g> Now if you are putting spreads on both sides, bull and bear, then you want the stock to stay at the same price through the options period. MB, posted some time ago that he was using leaps and that seems to be a good place to looks also. Joan