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To: edamo who wrote (110942)	3/23/1999 12:31:00 AM
From: Mike Gordon	Respond to of 176387

"selling covered calls on exercised puts is a good cash flow strategy.. i still contend the strategy is simple...but it does require incredible discipline and a belief in what you do." I can't agree with you more. Most people who fail in this area, including professionals, is due to greed and a lack of understanding of the currents which produce the premiums in both calls and puts.

To: edamo who wrote (110942)	3/23/1999 3:25:00 AM
From: Mr. Aloha	Read Replies (1) \| Respond to of 176387

Yes, you can sell puts in an IRA if you have the cash to cover the stock if it gets put to you. However, you must have a broker that allows you to do this in your IRA (not many do). Do you prefer selling cc's on exercised puts rather than immediately selling the underlying and selling more puts? I guess you could go either way (difference between the two is mostly commissions, interest on cash/margin). One of the only disadvantages to selling puts vs. buying and holding a stock (and writing cc's for short-term gains) is that the gain is always short-term capital gain. This is why it's good to do in an IRA. Thoughts? Mr. Aloha

To: edamo who wrote (110942)	3/23/1999 6:35:00 AM
From: arthur pritchard	Read Replies (1) \| Respond to of 176387

edamo: I don't understand what it means, to sell covered calls, on exercised puts. Thanks. I assume you would be the writer of the put. So by exercised put, you might mean stock has been put to you, because the price went down--reducing the value of your shorted put. I therefore assume that having written the put, and realizing your "mistake" you write a covered call "before the stock price goes down too much"---which reduces your losses from the shorted put position, when you close it out. TIA