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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (160)	6/24/1998 8:43:00 AM
From: Tom K.	Read Replies (1) \| Respond to of 2317

Dave, like I mentioned, I'm conservative. My most important criteria is the underlying issue... would I want to own it and why? From there I look at the charts to see where it is. I sell the PUT on weakness. This way the odds are with me.... strong issue at the bottom of its natural volatility cycle. I also use a margin account and set aside the funds in case. If I'm wrong and the issue is put to me, I'll watch for some strength and then turn around and sell the CALL (hoping it gets called). I'm really over simplifying the analysis that goes on, however that is the jest. My objective is the continual cash that is generated from the premiums and I view the stocks as the tools required for the process. If I wanted to be a master woodworker, I wouldn't buy my tools at K-Mart.... hence, I stay away from the cheaper issues (but often miss the fleeting opportunities). Hope that adds some clarity. Tom