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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: cfimx who wrote (5810)	1/19/1999 11:16:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 78495

Twister, >>wayne, in a crash scenario, why would you be a loser? Wouldn't you pocket the premium + interest as the call expires worthless?<< I wouldn't lose. I would make the entire premium and interest as you say. But a short seller would make more because my gain is limited to the premium and his can keep going for a long as the market falls. In a crash scenario I am kind of assuming that I won't be able to keep rolling down my options due to either an inability to get through to my broker or use my online account. This happened to me already during one of those 500 point down days. >>BTW: Selling naked out of the money leaps is a favorite pastime of Jim Rogers<< I didn't know that. He's must be thinking of it as a long term overvaluation bet the same way I am. He must believe the premiums are mispriced because the underlying stocks are mispriced. The long term nature of the bet is similar to thinking about long term bullish stock investments. I don't know what the stock's going to do short term but if I'm right about the values... Thanks! Wayne