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To: PAL who wrote (112195)	3/25/1999 11:15:00 AM
From: SecularBull	Read Replies (1) \| Respond to of 176387

Yes, but it's when the stock ceases to be dynamic that you certainly need to be clear of it. I'm afraid that most people do not have a good enough handle on this strategy to survive the worst case scenario (or similar). I'm not questioning whether or not it works. I simply think that just because you have a 10% margin requirement, doesn't mean that this is all that you're on the hook for when selling puts. A situation like October '98 could wipe out an investor who unknowingly (foolishly) got in too deep. Tax losses or not, you may have to cover the position. Granted that longer term puts sort of insulate you from sudden moves, but what if the losses are not as quick to recover? What about your other positions? What about having access to cash to pick up steals in a correction? (I made a ton by going deep into margin in October to pick up calls on CSCO, RMBS, WCOM, and SUNW, and would not have been able to do so without access to cash.) When times are good, this strategy is great. When times are good... Regards, LoD