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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (224760)	3/2/2003 11:13:15 AM
From: Knighty Tin	Read Replies (2) \| Respond to of 436258

Ild, the fact is, most people won't sign up to buy gold at a premium. And the offering has to have a premium to get it sold. I am going to answer your covered call post over here where it is safer for me to bark. 1. I agree with nearly all that Schwartz says. In fact, for a while, I thought I was reading one of my old notes circa 1998-1999. 2. You don't need to be reminded of this, but many do. Covered call writing is exactly the same thing as shorting a put and holding cash in case it is exercized. At one bid offer spread and one commission, for those who still pay commissions for some reason. So, the article would be better titled "Shorting Puts, Holding Cash" than covered call writing. 3. #5 on his list cannot be emphasized too much. Those who sell covered calls or write puts nearly always want to do the short term ones. The folks who make the most money or lose the least money are those who do the longer term options. I have one client with $9 million who has a small (for her) put writing account with me. She always wanted to do short term put writing. I talked her into trying Leap writing. Now, I can't talk her into going short term ever those few times it makes sense. <g> 4. Covered call writing is often the only option strategy allowed or done because it is the easiest to comprehend. I think there is great value in many other strategies and I wish they got more press.