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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: sam_o who wrote (56729)	7/17/2000 11:56:17 PM
From: Haim R. Branisteanu	Respond to of 99985

Writing puts is similar to going long the stock only you collect some premium. Best is to write puts wen the stock move down and you anticipate a rebound. Do not write put at the top of a rally. For example CSCO now is close to $70 it's upper trading range - you do not write puts. If CSCO will go back let say to 60 and you feel comfortable to own CSCO at those prices write a Aug 60 put. it will expire worthless if CSCO closes above $60 in Aug expiration and you collect the premium.Try only high volatility stocks with IV of 40% or more cboe.com Hope it helps Haim