Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (120280)	4/23/1999 12:45:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

taxman..."opportunity"... long always affords more opportunity and more risk...if you read my early postings you will better understand my strategy.. 1)never sell a put unless you have capacity to accept assignment 2)only sell puts in that which you desire to own i use the strategy as very bullish, selling put leaps on days of high implied volatility...taking proceeds and going long the underlying..increases risk for if assigned your cost is a blended price with the long factored in...in essence the strategy gives you "interest free loan money" instead of going long on margin...may slightly limit upside, but negates margin interest and margin calls...i've taken in 465k of premiums since 2/17/99, and have purchased 450k of underlying common...in spite of recent tech fears, the position is positive....my bets are dell 01-55 and 60, emc 01-150, aol 01-200, just closed "old positions sold in 97...intc 0050,sunw 0055,dell 0021.25&25..that had strikes equal to or higher than common when sold....as stock appreciates(always bullish premise...no such thing as a bear market)..put drops, and you get a two fold dynamic which further increases capacity to sell more puts...on the surface if viewed statically gives a "house of cards" appearance...but if envisioned as a dynamic it has much advantage to long/margin... it can be viewed as a programmed way for future purchase..re: emc...sold 10 emc 01150 zohmj @ 51.125..net to cash 51277...my cost if put is 98.875...stock will split on 5/28...i'm also long 1000 shares with a 101 cost....come jan 01 if the stock at 140...i'd gladly accept the put...or trade out and reset the option... the strategy not addressed in writing by the "experts"...who always fall back on "opportunity loss"...can't spend opportunity..believe don martini on the thread uses a similar method...been doing it for years..up or down issues, capacity keep growing...along with portfolio...use the underlying then as inventory to sell covered calls should the market go flat/down....can use the premium to cover puts...like a see-saw...hope this helps, ed a.