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To: PAL who wrote (166)	6/13/2000 5:16:00 PM
From: Dr. Id	Read Replies (1) \| Respond to of 1115

Do not forget that the risk associated with DITM short put where the extrinsic value is negligible, you can be assigned early. Therefore, that $ 1M cash is a safe cushion. Good point. I have been assigned early twice in the last two months...once with some GMST puts, and once with a July QCOM put. Dr.Id@doesntlikeearlyassignment.com

To: PAL who wrote (166)	6/13/2000 9:21:00 PM
From: AmericanVoter	Read Replies (1) \| Respond to of 1115

Paul, thanks for your example... and I do understand that, what I was referring to is that you can not use the collected premium to buy anything else...i.e., the money is in the account, but not accessible... kind of blocked by the short position... thanks again Paul best regards amein

To: PAL who wrote (166)	6/14/2000 7:14:00 AM
From: edamo	Read Replies (1) \| Respond to of 1115

paul and amein...."safe cushion" thanks for pointing this out, i think you and tom. k will concur, that the best way to use any short option position be it put or call, is by being fully cash backed.....by doing so, you are not concerned with the daily vagaries of the common, in essence you are turning your cash into an entity that allows a +30% per annum rate of return.... of course such a paltry return is not acceptable by those who are used to "ten baggers"....and margin calls on the downside! this meager return will double ones monies in about two and one half years. in a fast rising market, as we both know, the rate of return can approach 15% per month the object of investing is to limit risk, stress and to maintain consistent gains....