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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (57103)	4/23/1999 8:18:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 132070

option income is a different portfolio than 90/10...90 is money market 10 is options. <--- currently 40% total of mb's portfolio options income is currently 50% cap app'n is currently 10% ===== yes money can be lost in options income just as in a bond portfolio. some of his buy/writes (short puts) he hedges with lower strike puts.

To: re3 who wrote (57103)	4/23/1999 10:38:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Howard, Don't mistake my income portfolio for 90/10. Totally different portfolios with different operations and risk levels. The 90/10 could show a loss at some time. It never has, but since I am not earning 10% on the 90, it is certainly possible if I hit a bad stretch. So far, this 90/10 cycle (dating from Dec 7) has been frustrating, but far from a loser. Frustrating because I have had more losers than winners. However, it doesn't take many Compaqs, MUs, Merrills, Xilinxs, Lillys, etc. to make up for the losers. For example, CPQ is up 1400% if I lose all the money on the puts I own now. That means I can lose on 14 positions and break even on a portfolio basis. However, this has not been one of my better cycles. I have not had a huge homerun stock, though CPQ is getting close. And my usual stock batting avg. of about .500 is definitely in a slump. Of course, the fact that the market is hitting all time highs every day doesn't help. <g>