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To: PAL who wrote (109530)	3/15/1999 1:57:00 PM
From: freeus	Respond to of 176387

re selling puts Aha! that puts a different hue on selling puts. Then I will watch mine and not assume anything: should the price go down sufficiently (as when DELL is on a run up) I may even go ahead and buy them back, locking in a profit and not taking a chance on a big loss ...though I consider Jan 00 much more dangerous than Jan 01. Freeus

To: PAL who wrote (109530)	3/15/1999 6:46:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

pal...RE: SELLING PUTS... selling put should be taken seriously and viewed as an investment in an issue that if it goes against you, you are willing to own commisions on option aren't so high that you must deal with a low/no service or on line brokerage...best to establish a relationship with a full service firm, know your broker, and have the ability to reach him at any time...for timing is important when you successfully sell puts.. as far as margin, i have never had problem selling puts equal to the amount of my long portfolio...varies from firm to firm...more if firm understands conservative nature of put selling.. you should never lose "real" money on a put sale...only take tax losses...always reset position for higher premium... EASY MONEY....BUY MOMENTUM OR SPECULATIVE ISSUES....one should not do this with any money, be it "easy" or "hard earned"...to me the premiums from a put sale are very hard earned, for i fully understand my liability to the premium... you sell the put at a down moment....the perfect time to go long the underlying if you desire so... it is effective,safe,conservative, and very profitable if you practice discipline and restraint in your positions... prefer to set high dollar leap puts...hold for a year or so, until premium erodes to a point where it's not worth the opportunity...so roll forward...i have some sunw 0055...sold them in 97 for 17.5...now about 1...will close the position and replace with dell 01 55..big jump in premium with no additional exposure... hope this helps...ed a.