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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?

To: joysjoys who wrote (9404)	2/4/2006 6:13:18 AM
From: GROUND ZERO™	Respond to of 12411

Absolutely!!! I think shorting the options is a great way to add winning points to your trade, and here's how: the market can only move one of three possible ways, i.e., up, sideways, or down... with a covered Call or covered Put, you win even if the market moves only sideways, since while your contract may not make anything in a sideways market, the option premiums are eroding and all those eroded points go right into your pocket... until tax time, of course...<g> and to scoop out another handful of points, you may as we short the counter option also, since you're expecting the bias towards either up or down in the first place... in all, I think it's a really great trading strategy... GZ