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To: Michael Bakunin who wrote (117515)4/14/1999 4:04:00 PM
From: freeus  Read Replies (3) | Respond to of 176387
 
reif you are wrong about the trend, shorting puts or calls is a good way to lose your money
You are completely 100% correct. These puts that I sold on CMGI-seems like easy money, because lately CMGI has gone up 200% ? in a very very short time. And of course with '00s and '01s there is time value that deteriorates. But should CMGI begin to be out of favor and go down big time.....big losses.
There is always risk when there is reward.
Always
Freeus



To: Michael Bakunin who wrote (117515)4/14/1999 4:05:00 PM
From: David Harker  Read Replies (2) | Respond to of 176387
 
>shorting naked options, whether calls or puts, is an extremely
>good way to lose all your money.

Huh? In the case of Edamo, he is obligated to buy 8000 shares
of Dell at 60 in the year 01. That's if he choses to let it
get 'put' to him, he can roll it out, making money as he does.
He has told us many times that he only does this when he wants
to, and can afford to, buy the underlying stock.
If he chooses to buy the stock, how does that cause him to
"lose all your (his) money"? Seems he would still own all that
Dell/EMC/Intc/MSFT...



To: Michael Bakunin who wrote (117515)4/14/1999 4:13:00 PM
From: Jill  Read Replies (1) | Respond to of 176387
 
That's obvious...and with Ed, do you think you speak to the uninitiated? C'mon, Michael. He's one of the smartest people on this or any thread.

Jill