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To: BGR who wrote (129626)	5/28/1999 11:49:00 AM
From: freeus	Read Replies (2) \| Respond to of 176387

DearBGR, Of course everything you wrote is intelligent and true. On the other hand I have much more DELL and AOL than I could have had without margin...even with the 2000 shares which I recently sold...and you are right...when I didnt want to. I have made much more money than I could have had without margin...but it does give a lot of angst. I cannot back puts with cash...I dont have it...my puts sold were backed by "margin cash" which can disappear (and did) at any time. But I was able to buy back some puts with no loss or gain and one with a gain and one with a big loss...and still hold others which I expect to buy back at a gain. I have to say that I believe that what the brokers did to us...raise margin maintenance after we already held the shares on margin stinks. (But no, I dont want a law.) Freeus

To: BGR who wrote (129626)	5/28/1999 11:53:00 AM
From: edamo	Read Replies (2) \| Respond to of 176387

bgr...i hope all print out your post on margin and cash options give tremendous leverage if viewed as an investment...and margin has no place in any long term investment strategy, especially when you buy stocks that can swing 30% in a day. the sale of a put against cash or capacity allows me to earn 15-18% per annum on my cash or capacity...instead of me paying margin interest and having debt, i have the reverse...follow the rules, conclude that a 12% return per annum is exemplary..double in six years, conservative, and if ya do better..great.. too many enamored by recent gains, and movement of i-nuts, most will be left in rubble, as greed took over....play by the rules, lower your risk, increase your risk tolerance and you will win more than you lose..thanks the great post!

To: BGR who wrote (129626)	5/28/1999 11:57:00 AM
From: D. Swiss	Read Replies (1) \| Respond to of 176387

BGR, extremely well put, I would just add that a small amount of margin (30% or less) can boost returns with minimal risk. :o) Drew

To: BGR who wrote (129626)	5/28/1999 12:46:00 PM
From: Jill	Read Replies (1) \| Respond to of 176387

Nice post, BGR. All of us should refer to it from time to time. Jill

To: BGR who wrote (129626)	5/28/1999 1:01:00 PM
From: rudedog	Read Replies (1) \| Respond to of 176387

BGR - Great post. I would add that when selling puts I always want to own the stock at that price. I know many have a "take the money and run" attitude but I sleep better knowing that if I have sold calls, I would be happy to see the stock called away at that price, and if puts, that I would be happy to own at that price.

To: BGR who wrote (129626)	5/28/1999 1:11:00 PM
From: Michael Bakunin	Read Replies (2) \| Respond to of 176387

In re. 3., (put sales/cash similar to long): are you sure about this? It seems to me that you're forfeiting upside. -mb

To: BGR who wrote (129626)	5/28/1999 1:16:00 PM
From: Lee	Read Replies (1) \| Respond to of 176387

Hi BGR,..Re:.may sound like a mantra coming from me after every earnings, Excellent points all, especially the put selling part, (or naked call writing also for that matter). Anyone selling options has to abide by a strict set of guidelines, as Ed has described, to be successful. And even having personal guidelines, it can still get hairy at times! <g> Cheers, Lee