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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (8740)	9/13/1998 5:56:00 PM
From: LTK007	Respond to of 29382

A link for those following the Afghan news,as I am---will say one reason I am following this is the Taleban are showing signs that they are on the level of the Khmer Rouge,and that combined with a paranoid psycopath still in power in Iraq---this area is still a a powder keg. BTW I am an active member of Amnesty International so I want people to know I do NOT want these things to happen.But I am also a hard realist.Max dailynews.yahoo.com

To: LTK007 who wrote (8740)	9/13/1998 6:48:00 PM
From: JoeinIowa	Respond to of 29382

Max, I'm not exactly sure of the equation that is used to calculate the price of the option but the volatility is a part of it. Look at some of the real volatile stocks and you will see a lot of premium associated with them. Heres my favorite options site: cboe.pcquote.com Buying puts are a way to protect profits and writing covered calls is a way to increase income. I've used just about every option strategy at one time or another. I stopped selling covered calls because the market volatility made me not want to hold a position for as long as a covered call might make you. I've been playing uncovered calls lately because it exposes much less capital while taking advantage of the market volatility. Jose