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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: kaka who wrote (136)	10/28/2004 9:15:45 PM
From: Elmer Phud	Read Replies (1) \| Respond to of 652

Kaka A roll for a net gain will add money to the account, but the closed trade still might be for a paper loss. Eventually, rolling works only if the market goes in the direction of the strategy, and any paper loss is offset by a great gain later on. All which underscores the point that if you want to be safe only write puts on issues you are willing to own at or near the strike price. My approach would be to roll a ITM put as long as there is cash flow to be had by so doing. That's why it's important to be very selective in choosing candidates. You must be willing to own them, imo.