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I agree that selling naked options is risky...and the only ones I am
doing are ones that I would like to own if that price were hit.
If I make money on it, fine...if not I am a buyer and holder of what
I think is an undervalued Blue Chip. I play within my investment
budget.
Now what options would you be long on...in other words as I
understand what you are saying...you would go out of pocket for a
call if you sold a put.
John
------------------ Reply Separator --------------------
Originally From: "ira" <mr.ira@xxxxxxxxxxxxx>
Subject: Re: [RT] Interesting Puts
Date: 09/25/2002 05:13pm
Selling naked options can be very risky. There are many other ways
to trade
with the same or better profit potential and have limited risk. As a
market
maker and as a trader, I have always abided by one rule. " Never be
short
more options then you are long" That rule stood me in good stead
until I
retired and in the 18 years thereafter. Ira
----- Original Message -----
From: "John Cappello" <jvc689@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Cc: <MedianLine@xxxxxxxxxxxxxxx>
Sent: Wednesday, September 25, 2002 12:44 PM
Subject: [RT] Interesting Puts
>
> Yesterday I sold Dec. puts on GE with a strike price of 22.50. Nice
> premium.
>
> Today, before market rise I sold Dec. puts on JPM with a strike
price
> of 15.00. Nice premium.
>
> My concept is that if the strike prices were hit I would not mind
> owning the stocks at those prices. If not struck I keep the premium.
>
> I had previously sold Sept calls on GE with a strike price of 35.00.
> Premium became mine when options expired.
>
> I am looking for other ideas that have value along these lines.
>
> John
>
>
> To unsubscribe from this group, send an email to:
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>
>
>
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http://docs.yahoo.com/info/terms/
>
>
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