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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (49525)	3/3/1999 10:06:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Wayne, I don't like naked calls or short sales. I prefer long puts in a 90/10 program. Basically, naked call sellers have more winners than losers, but the first loser often takes them out of the game. Many try tricks like stop losses, but those don't work with discontinuous pricing. If it is the high premiums that attract you, I recommend credit bear spreads. For example, with a stock at $50, sell the $50 strike price calls and buy the $60. I think Leaps work best in this case as you have more absolute premium to work with and often you have a maximum downside of a small percentage gain. Of course, there are no homeruns in this game, but lots of solid winners. MB