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

To: Uncle Frank who wrote (9727)	10/25/2000 11:48:43 AM
From: im a survivor	Respond to of 65232

excellent words of wisdom I have a few leaps in my non trading account ( full service brokerage).....as far as regular old calls go....well, I am trying to be diverse. Buy stock long, buy a few calls here and there, write some CC's here and there and etc....... you make some excellent points however........ what I need to do is deal with the here and now, at this point......and thats figuring out what to do with those calls.....I sure want to buy more now so I can average down my cost, but, like I said earlier, I think I am best not to. Sure, if I buy and it rises, it turns out to be great, but IF I did buy more and if they did continue downward, it would kill me, so with that being known, I simply cannot buy anymore of those calls. As far as selling them....well, it's tempting. RR is correct in that calls sure can go against you in a heartbeat, and those extr's and jdsu's sure have done that, but RR is also correct in that March is a long way away, lots can happen and they are both great companies. So, instead of selling out of fear and losing 75%, I will sit and hope that jdsu and extr make a comeback. The weird thing about this is I swore if we got another huge dip, I would buy more of those extr and jdsu 100's, but after looking at my account numbers, I simply need to be prudent and not buy anything. Very frustrating. Thanks for the wonderful words of wisdom Keith

To: Uncle Frank who wrote (9727)	10/25/2000 2:56:19 PM
From: freeus	Read Replies (2) \| Respond to of 65232

OOPS I meant this to Keith but it posted to UF: Hi Uncle how's life? Keith, what Uncle means, and I've found too, is that this market is too volatile for calls shorter than Leaps....and the stock itself is safer in this environment. Unless you are watching minute by minute and selling soon as you have a gain, you can lose it all with calls. I'm pretty well coming to the conclusion that if the market stays this rocky...and there is no reason it shouldn't...than buying calls or even puts less than a year away is not a good idea. Of course selling covered calls is still fine. Selling puts is not however, unless you have lots of margin available and you are convinced that stock is as low as it will go. Freeus