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To: ild who wrote (113665)	7/19/2001 11:39:41 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 436258

No problem with selling poots, as long as its in a stock that you'd otherwise be buying and holding until expiration. Occassionally when I'm short a stock, if we get a sharp down move and I want it covered until post expiration, and the poots are generously priced, I'll sell near-ITM puts instead for the front month (instead of covering). I get the primo and I get it covered until expiration. The two downsides are 1) Stock tanks and you get the primo but miss the appreciation from the move 2) Stock zooms up and moves above your strike (but your put value goes away so you're at least "covered" up to the strike price). Does cause a wash sale on taxes so at some point down the line you need to repeat (of course, on long term short positions you could just repeat it over and over....).