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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (29422)	8/18/2000 12:38:22 AM
From: walkman_99	Read Replies (3) \| Respond to of 35685

If you are contemplating the vehicle to be your sole source of income, you should not put yourself in a position where you start form the get-go using up 100% of available capital, plus all call premium. If you are going to take the plunge & live off the premium from the vehicle, I think you need to leave sufficient dry powder to be able to uncover, plus some $$$ in case there is less call premium due to your vehicle going into the crapper. Tim I"m a recent student of El Polvito. I tried to write cc on ELON back in the Spring before the drop. I learned a few lessons about rolling out and keeping some dry powder. It isn't easy, but in my case, I want to try get the hang of using options and some leverage to increase my returns. Like anyone, I would like to spend less time at the office and more time enjoying life. It makes sense to try these techniques using a small portion of a portfolio (maybe 10 - 15%) of your stake and you can survive the consequences. Keep your day job until you build enough equity to have some $'s to fall back on. Meanwhile, like any garage business, you can eventually feel confident that you aren't making too many mistakes. Many on this thread have been concerned about losing their 'vehicle', however, when you can earn 8-10% on your investment every month, then you ought to come close to recouping 100% of your vehicle each year. How many situations offer those kinds of returns. It can be beneficial to be patient. Alas, that is not so easy when those margin dollars are so easy to access. Let me know if you think my approach is off target. I don't want to get on the wrong side of Clappy. BTW.. I felt that ELON had taken enough of a beating recently to sell some puts. When a stock is beaten down, puts can put some dollars in your pocket too. Maybe I'm getting ahead of myself. Thanks for talking about these strategies. I really enjoy the commentary. At least you managed to get me out of lurking mode. regards.. rzw@iaminaweofthevoltman