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To: Mark Peterson CPA who wrote (104460)2/24/1999 10:54:00 AM
From: edamo  Read Replies (1) | Respond to of 176387
 
MARK: another opinion is never intrusive...

agree completely with what you clarify and gvtucker's comments...
original thread was on using other peoples money, by selling a put and going long a call...yes a synthetic long...not my preference, but the preference of others...if it works for them ...great! it's a psychological thing...getting something for nothing...for most don't care what the cboe trader does....and ignore why it works, as long as they profit...

i prefer to sell puts against cash, it's lucrative, only with issues that i focus on and to me conservative...my downside risk is actually less than if i go long the common...perhaps i lose upside opportunity...i set my initial positions to give me about a 15% per annum return...over the past years it has far exceeded my base requirement...

i'm conservative, limit use of margin as a bridge between positions,
and use opm put cash in for whatever opportunity i like at the moment..it's the reinvestment of opm that expands my returns beyond +15%...many ways to view...as long as we make money...the return is relative to one's risk tolerance and needs..

you use logic, don't spew numbers, so your input is always welcomed..we are here to educate and be educated...and it is without cost!