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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: waverider who wrote (1214)	6/25/2001 1:02:02 PM
From: Mathemagician	Respond to of 5205

The lure of selling puts is often incredible. It worked for me...three times. The forth time, I lost all the profit from the first three. Be careful. You seem to be viewing your glass as half empty. Try this on for size... You are now holding a stock that you wanted to own long term (or else you wouldn't have sold the put, right?) which has dropped quite a bit. Rather than simply having bought outright and holding through the downturn, you intelligently managed your purchase using puts. Now, instead of being down and holding the stock, you are even and holding the stock. Write a covered call or straddle, then relax a bit. dM P.S. Oh, yeah, and be careful.