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

To: Joe Waynick who wrote (176)	8/28/1998 8:11:00 AM
From: RBane	Read Replies (1) \| Respond to of 355

Joe, I don't think I made myself clear in that post, so I'll try to clear it up here. I don't sell calls and puts on the same stock. I sell them on different stocks. I sell calls on stocks with bad fundamentals that have hit resistance and I sell puts on good companies that have reached support. There are a few cases where I will do both but not at the same time. For example, I'll use LHSG to try to make myself clear. On 8/26, I sold LHSG SEP 50 C @ 2 7/16. The stock was around 48. Yesterday, with the stock around 41, I sold LHSG SEP 40 P @ 3 1/2. Only time will tell how I make out, but I'm telling you what I do, and I certainly appreciate your perusal and knowledgable comments. I agree with what you said, I think selling a straddle or a strangle is a bad play because like you said, you are selling against the market. It is nice to meet someone with your experience and I look forward to more dialogue. Ron