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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (13771)7/10/2001 10:48:11 AM
From: 10K a day  Respond to of 14162
 
The higher the margin.
The tighter the stops.
The choice between margin and Leaps or options.
To me is a no brainer.
If a stock doubles.
And your' on margin.
You can buy more.

Essentially your buying power will out weigh any effects of leverage from leaps or options in a lot of cases.
That is assuming you can cover any margin call if the stock goes down or can afford to have a stock gap down on you once in a while.
Just some random musings.
Kind of disjointed.
I must say.
yay.tv

If you assume that stock price movements are manipulated horrifically.
Why in the world would anyone ever buy time premium.
If you assume stock price movements go exactly where a couple of market makers choose to move them.
Why would anyone ever play options unless you are a big Earth Mover.

I think mm's are trying to keep their heads down.
Make no huge price swings where people will scream.
I think eventually the retail players (or retail sympathizers) will squeeze some guys really bad.
And the whole game will start over again.



To: TimF who wrote (13771)7/16/2001 6:55:55 PM
From: Herm  Respond to of 14162
 
Everyone has their own comfort level and the risk varies. Have I used margin in my trading experiences? Sure! I avoid it nowadays. I found you have less to worry about when you don't have that hanging over your head.