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To: TigerPaw who wrote (129625)	5/28/1999 11:46:00 AM
From: edamo	Respond to of 176387

tp..puts, found money, whatever.. when dealing with any option position, you increase your risk exponentially by using margin, as in borrowing...you use margin as in capacity...the premiums you obtain in the writing of a put or a call, in essence increase your capacity, in the case of leaps the best strategy is to sell deep out of the money positions which even in a sell off do not move point for point with the underlying...this is a long term strategy...i've got some aol 200's...stock down 40%...put premium up about 10%...doesn't upset the balance...if you can't cover due to margin, then you violate the rule of always having the capacity for the assignment or a roll forward...you gotta play by the rules, no room for creativity, takes a lotta discipline and guts...