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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Tam who wrote (3678)	4/17/2002 2:54:35 PM
From: Dan Duchardt	Respond to of 5205

Thomas, You are swaying me to think that put buying makes more sense given the trading that I undertake (i.e. short term based on trends). I'm not trying to sway anybody away from what they have been doing, at least not until they have made a careful comparison for themselves on the stocks they are trading with the style they have been using. I just though some who are trading their options very actively might benefit from the long put approach, and suggested they take a look at it. If you think you are ready to make a move into buying puts, you might try doing it gradually, reducing the number of calls you usually sell and buying a few puts instead. Buying puts instead of selling calls will only pay off if you are catching highs in front of nice down moves, the faster the better (or if a stock really runs higher). Good luck with it. Dan