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

To: adairm who wrote (4185)	9/28/2000 9:52:36 AM
From: edamo	Read Replies (1) \| Respond to of 65232

adaim...."dim front month puts" as long as you are not paying an excessive time premium it is a good strategy....look at qcom 02 200....no different then going long, same risk/reward... front month some good volatility in otm strikes in issues like rmbs 70 or lower strike....(sdli may offer similar) look for disparity in premium from front month to next expiration...if you see more then 2x to 3x in an oversold issue consider the next expiration... i've been 80-100% cash since before the first quarter selloff....prefer to "lose upside opportunity" and sweep front month crumbs with otm strikes....can average about 6% per month return and avoid the angst of wild swings.... it's a traders market....put selling plays into it... providing you don't over leverage with long stock and short options.... good luck on your entry points! ed a.