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To: Sowbug who wrote (39453)3/17/1998 10:29:00 AM
From: Bald Eagle  Respond to of 61433
 
<<thus, yields is "playing with fire," metaphorically speaking.>>
If you consider a $125 + commission loss as burning coals, then I guess he is.



To: Sowbug who wrote (39453)3/17/1998 10:30:00 AM
From: MStonek  Read Replies (1) | Respond to of 61433
 
<<In my book, a 100% loss on your investment counts as getting burned; thus, yields is
"playing with fire," metaphorically speaking.>>

I disagree. When you buy out of the money options 3 days before expiry you know that there's a good chance you'll lose 100% of your investment. As long as you're not betting the ranch, it's OK.
And as it is turning out, much better (and safer) than selling puts.

JMHO.