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To: PAL who wrote (117688)4/15/1999 12:27:00 AM
From: edamo  Respond to of 176387
 
paul..thanks the link, i have bookmarked...i usually close a put position when most of the "value" gone..sometimes takes a while, other times happens in a short time..been gone back and forth with many on the "risk" issue..buts its a simple numbers game..set aside a portion of your capacity, and just continue selling, covering selling ad infinitum...actually works better in a steep decline market cause something always has abnormal "iv"...the inets are probably real cash generators once you get the range trade rhythm...

what most don't realize is that they tend to analyze it as a single trade, frozen in time..its a dynamic and even the falling knife over time cuts your cost basis if put to almost zero...

how's that for an old guy..cheers, and tommorrow may be better?