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

To: freeus who wrote (30240)	8/22/2000 11:09:56 PM
From: adairm	Read Replies (2) \| Respond to of 35685

Yeah, I've having good luck with RMBS right now. I've held it for a year and a half, and it's finally rewarding me. It's been a tough hold. Right when you think it's going to pay off, something come out of the bushes and strikes it down. I'm short puts on NTAP. I try not to sell puts on stock that I own. I sell 'em on stocks that I would like to own! If you sell naked puts on stock that you already own, and that stock tanks, well, you've put yourself (sorry... bad pun) in a bad position. Not only are the puts losing money, but the collateral is going down which may create a margin call. And we just LOVE those, don't we? Last month I sold puts on RFMD. Didn't work out. Stock went down, and somebody put the stock to me. So, I've sold covered calls on it. If I get called out, I'll about break even. If it doesn't rise to the strike price, I'll just keep selling those calls. I remember from when you used to be the queen of the DELL thread, and there were all those folks preaching the "AEOB" or All Eggs One Basket, or somesuch. Not for me, and especially when selling puts. And I don't want to start a controversy on Volty's thread here, because I greatly respect his no/low stress covered call selling approach, and avoidance of the casino. But, the risk profile of selling puts is very similiar to covered calls. Why doesn't he like the strategy? I know he doesn't like to go on margin, neither do I, but I feel it's a waste to let my 'buying power' go to waste. So, I use it as collateral for selling puts. I don't sell DIM puts like edamo does, but OTM puts short term. Let 'em expire worthless. Get 5% free each month. (Sell at a strike price below support.) OT: It's hard to keep the Odyssey clean, inside and out because we really use it. Carpooling kids can trash a minivan before you can say "Happy Meal"!. We also use it in our house rental business. It's great for hauling tools, ladders, and stuff. I hope QCOM isn't dead! I have some '02 LEAPS I want to make a killing on! I just signed on to Verison, and bought a Samsung CDMA phone. My BellSouth contract expired, so it's time to change. Goodbye TDMA! Hey, it's closer to fall. Fall is when the great technology rallies occur. Be patient, get your portfolio positioned to take advantage of the next rally, and prosper! Best, Adairm