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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: m thompson who wrote (2035)	2/3/2001 8:01:44 PM
From: David Lind	Read Replies (2) \| Respond to of 2241

Welcome to the world of Naked Put Repair. A world that naked put sellers spend a lot of time in. I would caution against trying to work your way out of a busted NP with short stock or any other strategy. Because those things have a way of getting you into even more trouble. Don't panic. Better to simply wait until expiration is near, and roll the put out to the next month, or even farther depending on how your numbers calculate. The idea is that eventually you will break even or make a few dollars as the underlying recovers, and as you add time value to your premium. It may take months, but it is better than a panic and loss right now. ANd what the heck are you doing writing naked puts on JDSU anyway? When you play options with a volatile stock, especially NPs, you are just asking for some tough lessons. That nice little premium that looked like a sure thing a few weeks ago can turn into a real ugly bear overnight, can't it? Just remember the pain you are feeling and that will hopefully be a great lesson for the future. (No pain, no gain!) David