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To: Tenchusatsu who wrote (157455)1/31/2002 1:30:06 PM
From: kapkan4u  Respond to of 186894
 
<Speaking of happy suckers, I'm still trying to figure how who in their right minds would want to buy your $15 puts for $7 a pop.>

When the stock is say $9 there is only $1 put premium at $7. The trick is to sell puts when the stock is cheap and to hedge what you sold when the stock is expensive. I prefer hedging to covering to keep the tax man away.

Kap



To: Tenchusatsu who wrote (157455)1/31/2002 1:31:04 PM
From: Elmer  Respond to of 186894
 
Speaking of happy suckers, I'm still trying to figure how who in their right minds would want to buy your $15 puts for $7 a pop. The mentality of option buyers still confounds me.

That's the beauty of it. Be a seller.

EP