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To: Skeeter Bug who wrote (43965)	3/17/1999 7:22:00 PM
From: TREND1	Read Replies (2) \| Respond to of 53903

Skeeter The classic text books say the best option plays are to write covered calls ...and be moderate bullish at that time. Larry Dudash PS: But if you knew for sure that MU would start heading for zero today, then puts are best.....but not ever one knows that (g)

To: Skeeter Bug who wrote (43965)	3/18/1999 8:54:00 AM
From: Carl R.	Read Replies (1) \| Respond to of 53903

No Skeeter, most people lose in options because like betting at Las Vegas, the odds favor the house. The options writers hedge their position, and nearly always win (but you'll learn that if you get into business school), the only exceptions being in the case of a large gap up or down. They also collect the spread in addition to the time premium. Option buyers on the other hand start out on day one losing the spread, and lose time premium every day. If you are a brilliant market timer you can make money trading options, but why play a game where the odds are against you? Writing covered calls you still lose the spread, but at least collect the time premium, so the odds are in your favor. I understand your preference for the potential of a large gain while limiting your potential loss. Buying options are much like buying lottery tickets. You can't lose much, and you can make a lot, but the odds are stacked against you. Me, I'd rather be the state and sell the lottery tickets, content in the knowledge that I'll make a nice steady, predictable profit in the long run. Carl