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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (9707)	6/8/1998 3:18:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 18691

Many new investors with small portfolios (like me) can't get authority to write anything except covered calls. The small premiums to be gained usually aren't worth the risk of having stock called away in a company where you have bought a few hundred shares and plan to hold for a long period. I had to open a separate account with Dreyfus to buy calls and puts, because E*Trade refused twice to expand my options authority. So apart from big hedge positions, many options are bought by us small fry trying to leverage a few bucks into something larger. My experience so far mirrors the pattern, with the majority of options expiring worthless. However, a few big wins can easily cover the many small losses. I will let you know in a few months if I have turned the corner or given up options altogether. I only put a small amount in my options account with a pledge to close it if I lose it all. Live and learn.

To: Gary Korn who wrote (9707)	6/8/1998 12:30:00 PM
From: McNabb Brothers	Respond to of 18691

Gary, Nothing like selling time value of an option! Most everyone I have talked too concerning selling options naked has told me how dangerous it is! If one is willing to sell a short short then selling a naked call is safer IMO since there is some time value and I usually sell a strike price above where the stock it is currently selling and I do right the opposite when I'm willing to buy a stock I will sell the puts naked! Mo is a very good stock to sell puts on IMO! Hank