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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Vol who wrote (70)	11/9/1997 4:14:00 PM
From: Investor2	Read Replies (1) \| Respond to of 226

Re: "Since I mostly buy stock and sell covered calls, I've been thinking of shorting some stocks and selling covered puts. Any thoughts?" That seems to be a very popular idea. It is a complete about-face from your current strategy. Buying stock and selling covered call is one of the most conservative methods of stock market investing, while selling stocks short is very aggressive. Best wishes, I2

To: Vol who wrote (70)	11/10/1997 5:08:00 AM
From: raymond marcotte	Read Replies (3) \| Respond to of 226

stay long and forget the options. if the outlook does not turn down you will lose $ on short-margin expenses and the cost of the options. of course if the market turns against you there could be big-time liabilities in your short positions. just be patient. this volatility and occasional-pessimism-period too will pass. over time stock prices trend upwards, so shorting is betting against the trend and even worse you are forcing yourself to predict the exact cycle for a particular stock(s). i never heard of anybody who got rich trying that strategy. it is not investing. for sure! why turn to speculation on an attitude about an uncertain future. are you an experienced bear? what kind of tuition are you prepared to pay?