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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: NateC who wrote (9987)	3/20/1999 4:34:00 PM
From: Tom K.	Respond to of 14162

Thanks, Nate. I thought I had read just about all there was on options.... haven't read anything by Trester... will have to look. You're right about the danger. But that's true in most things if your not careful. LEAP puts have a large premium so that helps to reduce the risk. Also, if you overextend on an issue such that you can't buy it if needed then yes, you're out on a limb... recommendation is stay within your abilities. I think people get burned because of the easy money, hence Mr. Greed gets involved and that's when problems happen. I know from experience. Last year I was doing great with puts and then began to stretch it and sure enough, the market dived in Oct and I got put without sufficient capital and had to take a loss. It was an expensive course from Wall Street Univ but I believe that I learned. The problem was me and my buddy Greed, not the strategy or the puts that caused the loss. Now I work hard at managing me and I'm back to making money. Tom