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To: AmericanVoter who wrote (86996)	12/26/1998 8:48:00 AM
From: hdl	Respond to of 176387

with 87,000 posts I should have learned to get out of my shorts

To: AmericanVoter who wrote (86996)	12/26/1998 11:50:00 AM
From: PAL	Respond to of 176387

Hi Amien, I do not use any software. Even for this trade, which I usually do it online, I have to get a broker telling him what i want, and thus paying higher commission. The stock can go down to 85 at expiry and if I don't do anything, I would be losing $ 15,000 by buying back the naked put at the close or get assigned. To mitigate any loss or "remedy", I have these options to consider: a. Between now and January 00, if the stock trades north of the century mark, I can close both open positions by doing a reverse COMBO for a Net Credit (i.e. buy back the put and sell the call). Thus I do not have to hold them until expiry. My philosophy with option is that we should not greedy trying to get the last dollar. It is fine to leave some money on the table for others. b. Roll the put such as Buy back that Jan00 100 put, get the funds from selling July00 100 put, or even Jan01 100 put. c. As a general principle, I will not let myself be assigned, i.e. if the stock is at 85 at expiry, if I have to choose, I will take the real loss than holding the stock at 100 experiencing the paper loss. But of course there is option b) above. One last thing in selling naked put: If you are assigned/put, it may mean that you are buying a stock nobody wants (that is why it is coming down), or even catching a falling knife. Take the loss and chuck it to a bad trade. (I have had my share of bad trades). Therefore, I will only do this on solid companies. Regards Paul