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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (296)	8/21/2001 12:34:53 PM
From: jim black	Respond to of 36161

Kastel, DON'T YOU DARE RELAX... you may lose your ass. ( But please, if you do find a way and you can sleep well at night with it, I am sure I am not the only one on this thread who wants to know about it. June 4, 2001 article by David Moore on Prudentbear.com has a very interesting analysis of longterm yields of S&P indexing and common stocks, versus bonds, challenging at the heart of the concept the notion of buy and hold. You might find it interesting, and if you find it, as I did, while still holding some speculative positions, it may induce you to reconsider where to put your money, all just FWIW. Jim Black

To: Cogito Ergo Sum who wrote (296)	8/21/2001 6:21:31 PM
From: isopatch	Respond to of 36161

<looking for easier more relaxed ways to make money> We should call that, "the game within the game.<G> Iso

To: Cogito Ergo Sum who wrote (296)	8/22/2001 10:09:33 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 36161

Kastel, I don't think that trading options, even when it comes to the conservative strategy of selling covered calls, adds very much to relaxation. However, I have often recommended the locking in of profits on more speculative issues through the sale of covered calls. The guidelines, I emphasis are: (1) Confine this strategy to big companies, where there is a lot of stock being traded and where there is at least enough option activity to ensure something close to a reasonable market price. (2) Don't buy the stock and sell the calls at the same time. Buy the stock when you think the price is reasonable, and sell the calls when the stock price looks like it has reached a plateau. Timing in the trading of options is far more critical than in the trading of stock, since options are essentially wasting assets. Art