Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: BrooksR who wrote (2172)	9/10/2001 5:52:07 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 2241

BrooksR, Sounds like you have a fair amount of experience with some things I've only thought about doing. I agree with you that 5% per month is pretty attractive, and if you are doing that well there is probably no need to fool around with other things. Most of my money is in IRAs, so except for some fooling around on a very small scale, I have not done much besides writing CCs. I should have done a lot more over the past 18 months, but I'm sure that I have done better than some folks by simply keeping a healthy cash reserve instead of being heavily long and writing CCs. For those not constrained to CC writing, I think there are strategies that offer better downside protection, but all of them require attention unless you are lucky enough to leg in at the beginning with little to no forward risk. With many stocks badly beaten down, I think diagonal spreads with long LEAPS or at least farthest month calls are getting pretty attractive. If you can time the ebb and flow of the market, long calls and puts can do very nicely too. I started another thread recently for people who want to discuss the more esoteric strategies Subject 51589 Dan