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To: PAL who wrote (86971)12/26/1998 1:13:00 AM
From: BGR  Read Replies (2) | Respond to of 176387
 
Paul,

Thanks very much for the kind words! I completely agree that it is always safer to do a combo than enter two different transactions. This is in general more true for shorter term options than longer term ones which fluctuate less, but even then the market can quickly move away when one side of the trade completes and the other doesn't. Coupled with spreads, this has sometimes significantly reduced my profit potential.

Nihil pointed out that since you are selling naked options (puts), you must have been using up some part of your available margin. Even then, since you do not actually take a loan, I presume that you do not pay margin interest. So, I like this trade.

-Apratim.