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

To: David Lind who wrote (2037)	2/4/2001 2:32:19 PM
From: m thompson	Respond to of 2241

thanks for the advice.when i sold the puts(originally jan 50s)the market was taking bad news and shrugging it off.plus the fed was just beginning a string of easing moves. i also figured the jan. 31 easing and the merger were still ahead. eventually i rolled out and up.my thinking is why not get paid to buy a stock.my basis is around 50 if i get the stock put to me so ill be okay. i'll sell cc's on part of my 500 shares if i have to. by the way i especially look for volatility in a stock so the premiums are at least 10% of atm strikes,which gives me a better chance of creating a sizeable cushion before and after a stock is put to me. ive built up a %30+ cushion since jan. 12. ofcourse i only do this on stocks im comfortable holding at strike price. still its a bit surprising jdsu has come down this far(thankfully, on low volume). i appreciate your help. matt