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To: Marq Spencer who wrote (112287)3/25/1999 2:46:00 PM
From: Dennis Kern  Read Replies (1) | Respond to of 176387
 
Marq,

Why does no one mention the possibility of the stock getting put to you as soon as you write it? If it's in the money, it could be put to you at any moment, right? Wouldn't that screw up the plan?

Dennis



To: Marq Spencer who wrote (112287)3/25/1999 3:02:00 PM
From: edamo  Read Replies (1) | Respond to of 176387
 
marq...re : time premium...erosion..

well taken...the example grew from a query from one who had no understanding of options...so erosion was not even mentioned...the factors that you bring up have been introduced in my tet a tet with chuz...where i explain what i refer to as the dynamic...the cumulative effect of premiums...without adding risk/exposure...

it is not a random act or won ton recklessness...it is a conservative strategy to accrue that which i want at a discount, and growing same with cash contributions of those who are not as bullish as i..

i cannot be in a market unless i am convinced it is bullish...for me as i have posted, there is no such thing as a bear market..just corrections to an upward trend, some longer than others...in fact the corrections are required to maintain the upward momentum...the moving average always adjusts upward...

i would only consider this strategy with large cap issues, with great fundamentals,and massive liquidity...i am an investor...not a trader...i prosper from the traders and speculators short view..

hope this brings a bit more clarity, to that which can be made very complex...when it really isn't...thanks, ed a.