Re: [RT] Uncovered Puts

[sue crew <screwy@xxxxxxxxxxxxxx>]

Earl what do you think will be the main driver for a big move down, in equity
markets.?

cheers

sue






EarlA wrote:
01f001c2b12c$7b31e4e0$8b00a8c0@xxxxxxxxxx">
  The income sounds nice, however I don't envy your exposure to another majorleg down and I believe it is coming and coming soon (within the next 3-6months). Many of these stocks appear to either be resuming major declines(e.g. S) or topping out in bearish formations (e.g. EXC). The only questionon my table is "when" not "if". Keep your fingers crossed and hope you makeit through January expiration.Earl----- Original Message -----From: "John Cappello" <jvc689@xxxxxxx>To: <realtraders@xxxxxxxxxxxxxxx>Cc: <MedianLine@xxxxxxxxxxxxxxx>Sent: Tuesday, December 31, 2002 8:32 AMSubject: [RT] Uncovered Puts
  
    These continue to be kind to me without any "put" to me in 6 months.I have had to take on a bit more risk for this period. One aspect isthat I was more able to negotiate price between bid and ask, and nowoften pay closer to the bid...having said that I just got a greatprice for the newest S put.I have found a screen that really seems to be helpful. I look forstocks with a beta between 0.5 and 1.0 along with a PE between 5 and10 plus preferably trading in the 20's or less.Often  I screen PE'sbetween 5 and 15. It seems market action has least affect on theselow beta as would be expected. This is what I currently have on:Jan '03 EXC strike price $35Jan '03 GE strike price $17.50Jan '03 ITG strike price $20Jan '03 JPM strike price $15Jan '03 KG strike price $15Jan '03 S strike price $15Feb '03 KBH strike price $30Feb '03 SWY strike price $17.50Mar '03 
AHG strike price $17.50Apr '03 S strike price $12.50Now averaging between $3000 to $4000 per month on just Puts andnominal commissions with flat rate from Saloman Smith Barney.I have studied most of the option systems offered by various vendorsand have not been impressed and cancelled after trial periods. Ifanyone out there has seen anything decent in the option area, I wouldbe interested to learn of it. The biggest problem is their exits andstop losses which are difficult to obtain in the real world.JohnTo unsubscribe from this group, send an email to:realtraders-unsubscribe@xxxxxxxxxxxxxxxYour use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
    
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