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To: His Pinkness who wrote (90997)1/24/1999 8:27:00 AM
From: Mark Peterson CPA  Read Replies (1) | Respond to of 176387
 
Selling naked puts is a sure-fire way to incinerate your investment capital. IMO, this is not an investment to carve out the put premium but a nice divorce strategy to make your portfolio go to zero. Really upsets the other party to the litigation and the judge will likely go ballistic. He won't be able to do more than admonish you if you have no other assets. Of course, there is no law that prevents you from losing all the money you wish. At a minimum, if you sell the FEB 70's, then buy the FEB 65's in a one to one ratio.



To: His Pinkness who wrote (90997)1/24/1999 8:37:00 AM
From: Ben Antanaitis  Respond to of 176387
 
The Max-Pain&#153 study is just that, an attempt to gather the data necessary to determine if there is statistical validity to the perceived (felt) effect. It is specifically directed toward the price of the underlying stock on expiry day, not any particular open interest tactic.

Sorry, but I do not give investment advice.

Ben A.
ez-pnf.com