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To: Knighty Tin who wrote (32901)	5/5/1998 6:10:00 PM
From: DavidG	Read Replies (1) \| Respond to of 53903

Mike, Thanks for the response, I appreciate it. A few questions: 1) First, I use a 90/10 technique, which means I put a minimu of 90% of my option money in a cash position and never commit more than 10% to long puts or calls. I don't understand what you mean by a cash position in this case... unless you meant 90% of investment money in cash positions and 10% in Options. 2)I also use the third entry method, but since I trade more often the span between 1/3's may only be a 1/2 point. How do You spread the 1/3 trades? What is the spread or criteria? 3) I like your Quadruple criteria for getting out of options, I would take that any day of the week<g>...but do you look for some other criteria? I just don't have the discipline or patience with options to wait that long(...but with equities definitely).<vbg> 4) When you get near expiration time do I understand you to roll over to next month or two rather than have options expire...another words if the options do not look like they will get in-the-money? 5) When you find you made a really brilliant move and the options are making you big money, do you continue with your 1/3 allocation (or some portion) to compound your gains? I tend to do that to make up for losses, kind of like shooting craps.<g> Is it fair to say you look at PUT and CALL options as a long term investment strategy as oppose to trading or insurance plays? TIA DavidG