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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Iceberg who wrote (13906)	3/31/1998 7:26:00 PM
From: Steven Bowen	Respond to of 53068

Ice, you can always try some sort of hedging trade thru earnings season. (Although anymore it seems like we're always in an earnings season.) Selling some covered calls or buying some puts can offset part of your losses if the stock moves against you. Selling covered calls is an excellent way to generate extra income and provide yourself some downside protection. Buying puts is like buying insurance. The put will skyrocket if the stock tanks, and if not, the most you can lose is the premium you pay. Actually, you can buy a put that expires out a couple months, and once you make it thru earnings season, you can always sell the put if you didn't need it. Cheap insurance. Steve