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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: im a survivor who wrote (1762)	9/16/2000 10:44:37 AM
From: Jill	Read Replies (1) \| Respond to of 65232

RE: sell puts, just be sure you have ample margin capacity that if we really tanked in Sept/Oct you could handle it. Sell one put, perhaps it sets aside whatever, say 10K of margin. But if the stock temporarily takes a nosedive, it may require as much sa 40K of margin to hold it...because the put would suddenly cost beacuoup bucks to buy back. It's as risky as going on margin in its own way, because it sets aside margin and thaqt flcutuates absolutely according to the price of the underlying every day. The difference of course is that you aren't charged margin interest.

To: im a survivor who wrote (1762)	9/16/2000 10:49:08 AM
From: sting1935	Read Replies (1) \| Respond to of 65232

KG4, I enjoyed your post and understand your quandary about Covered Calls, puts, etc... because I am going through the same mental gymnastics. I recommend a book titled "LEAPS" by Harrison Roth. I am maybe an eighth of the way through it and find it fascinating - but slow going for this old dog. I am tempted to try some of the things learned already, but think I will wait until I work through the whole book. Best of luck Sting

To: im a survivor who wrote (1762)	9/16/2000 2:28:45 PM
From: freeus	Respond to of 65232

selling puts.....you have the idea exactly. I guess the question is: do we own stocks or collect premiums? If I buy 5000 more shares of SSTI at 30 I'm in margin. If SSTI goes to 15 I'm in trouble. If it goes to 50 or 60 as I think it will, I"m gloriously happy and I sell and have beaucoup bucks. If I sell 50 puts I have immediate money. I'm not in margin but my margin is "in abeyance"...at least a little of it (less with Brown & Co than Fidelity) while the stock goes through its gyrations on the way through Oct and to Dec-Jan. Of course my calculations tell me that SSTI has already tanked and will stay in the 28-30 range through the coming pain. However now that I've pocketed the shares and not bought the stock, if it goes to 50 or 60 in Jan, the puts expire worthless but I don't have the stock so I've only made 5 dollars instead of 20 or 30. Good luck. My order did not execute: now I decide for Monday, do I want to buy more on margin or sell the puts a little lower price. Or do nothing? Freeus I must admit that this crazy market, up down up down, big up big down is making me think that next time I'm "rich" by my estimation I may be willing to sell EVERYTHING and ONLY sell puts, with the occasional buy of stock with immediate cov calls.