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Strategies & Market Trends : Option Trades -- Ignore unavailable to you. Want to Upgrade?

To: zx who wrote (917)	3/20/1998 2:26:00 PM
From: scotty	Respond to of 2341

Ag,this market reminds me of a trade I made years ago.I had been buying Yen puts for a couple of months and finally threw in the towel.The DAY after my options expired worthless the YEN dropped several points,$1250 a point per contract,missed out on thousands......up 50% on AMR,let it ride

To: zx who wrote (917)	3/20/1998 2:44:00 PM
From: Rick C.	Read Replies (1) \| Respond to of 2341

AG~ RXSD only down 2 after reporting a mere 78% incr. in Q2 sales and a 67% net income advance. We should have had some nice calls. <ggg> Thanks for your and Dave's bank comments. Rick

To: zx who wrote (917)	3/23/1998 12:43:00 PM
From: scotty	Read Replies (1) \| Respond to of 2341

ag,I closed SUNW puts,no follow thru,closed AMR at 14 paid 8...opened a few WMT puts

To: zx who wrote (917)	3/26/1998 8:32:00 AM
From: NIng Zhao	Read Replies (1) \| Respond to of 2341

I sold two naked Amazon.com October 60 calls. The way I figured it, I was going to short two hundred shares of the stocks, and selling the call seems much more attractive. True, my maximum gain is $30, but I am happy with that because I captured some premium as well. In addition, I also get to earn interest on the $6000 premium, which I won't if I had shorted the shares. Furthermore, there is no way that I am going to hold the short till October anyways, so the time constraint doesn't really affect me. Could someone tell me what are some potential pitfalls of this strategy? Thanks