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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: ratan lal who wrote (6066)	10/9/1998 4:05:00 PM
From: Tom Trader	Respond to of 44573

>>Isnt that dangerous with unlimited risk ?? No more so than shorting a stock or buying a stock and seeing it go down on you--though the maximum downside is defined in that instance. Or being short the futures I guess it is all a matter of getting the direction right and managing the risk. I find that selling naked OEX options works well for me because of the steep premiums that one receives. But if I am wrong, I bail or take other protective action--like yesterday when the market reversed, I bought OEX calls at lower strikes -- and right now I am well ahead. >>How long will your broker let you keep SHORT OEX calls (or even puts)?<< As long as I have enough in margin to cover the position:) Margins are pretty steep though. Ratan, it is not a strategy for everyone but if one can be disciplined it is a great way to make money.