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

To: Percival 917 who wrote (3485)	9/24/2000 4:16:47 PM
From: RR	Read Replies (1) \| Respond to of 65232

Hi Pro Golfer: Heck, ya sounded so down in that earlier post. I started to write ya back and ask if u had such a weenie attitude when hitting your driver.... Puts - Remember, I only buy options. I don't sell them. That goes for puts and calls. I keep it simple. I use to sell them, do spreads, all that fancy stuff in years past, but in recent years I've just kept it simple and stay on the buy side. I do not buy puts very often. The last time I did was back in the spring when the Naz was going down and it had clearly lost support. It was apparent that the Naz would struggle for awhile so I simply played both sides. You may recall that I posted on here that I was playing QQQ on that ole simple notion of up 3 days, down 2 days. I'd buy QQQ calls, sell them 2 days later, buy puts and let it go down, sell, and do it over again. You want to buy puts on the idea that the underlying will go down in price. Then the put goes up in value as u know. It is that simple. If u think the underlying will go up, buy a call. If u think it will go down, buy a put. I've also bought puts as insurance if I had a huge profit in a position and I fear it may go down or the Naz turn down after a nice run. If the position turns against me, and for whatever reason I don't close the call out (which is really dumb because u need to have trailing stops in place) then that put would mitigate the damage because it would go up in value. Those are two examples where I've used puts in the recent past, Joel. I do not buy a put on a stock simply because I think it will go down. I'd rather focus on those I think will go up, which is the natural trend, and buy calls instead. Then use a put as insurance or else use it in a general way like playing the QQQ like last April. Hang in there my Friend. RR