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To: GVTucker who wrote (180429)	3/16/2005 9:05:32 AM
From: rkral	Respond to of 186894

GVTucker, re "Writing covered calls is actually bearish. (You're reducing the risk of holding the stock.)" Agreed, as long as one distinguishes between a bearish position, and a bearish viewpoint of someone committed to holding the stock. Ron

To: GVTucker who wrote (180429)	3/16/2005 11:38:45 PM
From: Amy J	Read Replies (1) \| Respond to of 186894

GV, RE: "Put selling is bullish, not bearish." Definitely agree selling naked puts is bullish: Selling naked puts is collecting premiums while not maintaining cash-on-the-side in case the stock drops, is bullish. The assumption is the stock won't drop. But selling puts (where strike < market) while maintaining cash in case the stock drops, is bearish because the cash-on-the-side is not being worked in the market. In fact, the cash is stuck on the sidelines waiting for the stock to drop. That's bearish. I think you would agree that's bearish. Meanwhile, it's more bullish to put the cash in the market now, rather than waiting for the stock to drop. So, how you wish to actually manage a particular investment suggests whether it is a bullish or bearish stance. RE: "Writing covered calls is actually bearish. (You're reducing the risk of holding the stock.)" It depends how the covered call is managed. Betting the stock will go up say 10% to 70% (rollovers) over 1.5 years isn't bearish, it's bullish. This assumes you plow the premiums right back to buy more stock or use it to do rollovers. Agreed it may not be greedy to cap your potential gains, but it by no means is not bullish. It's more of a bet on the slope of the incline. RE: "sell puts that will margin existing stock if those puts happen to get exercised..."heavy risk takers that selling naked puts" True. I abide by the rules: never go on margin or never borrow money. So my post didn't address margin or naked puts. Regards, Amy J