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To: freeus who wrote (109632)3/16/1999 7:56:00 AM
From: edamo  Read Replies (1) | Respond to of 176387
 
freeus, freeus, freeus....up/down...puts/calls...get off your knees..

sorry for not expanding my comment...

up market puts= you sell puts if the market or underlying issue has an upward bias...same as going long with a fixed point move till expiration....but you want to sell the puts in pullbacks in an up market/issue

down market calls=you sell calls in a flat to down market/issue bias at a time when the market rallys...same as going short, again with a fixed point move.

basically you are long or short with a set point move...same as using a limit...cap opportunity, less risk, conservative.

and when you get caught in a changing market direction you write calls to cover your puts or puts to cover your calls...this will be your next strategy to think about when you discipline yourself to the market timing volatilty moments....takes a lot of work and monitoring.

you want the option to move opposite the market/issue when you sell same, so the premium erodes....the opposite is true if you are a buyer of options,where you want the premium to increase.

sorry...for the misunderstanding...please forgive me for the temporary angst caused...ed a.