Hi. Well, I'm still in the market. I trade stock options. Until March 14th, 2000, I held very few securities but did have quite a few positions in naked puts. Since this level of option trading requires a margin acct, I had to buy back many of my puts at a very high loss and I just let some of the "better" stocks get put to me. Some have recovered and some have not. With the securities that I do hold, I've been selling covered calls and then buying back the call when possible and doing it again.
This week was the first time in a long, long time that the Nasdaq's been up 4 days in a row; all of the stuff I trade/hold/sell options on trades on Nasdaq.
Don't know if we've hit bottom yet for the last time. Some keep saying we'll retest the lows one more time and then move up. I do think that were I wanting to get into the market, now would be the time as there are some real bargains out there. I rode a lot of 'em down; you could ride them up.
Anyway, in 4 days, my acct's paper value went up about 28%, and this does NOT count premiums brought in via option premiums.
Stephen, this is to advise you that you have been reported to the moderator and administrator. While tis board is dedicated to free speech and open ideas, we will not condone smut. The language you have used is vulgar and reprehensible. Imagine if a Son (Tao or otherwise) were on his father's lap perusing this board, and had to turn to daddy and ask "what's a naked put? Why is this man talking about his naked puts?"
The image of you and your naked puts will haunt me for the rest of my life.
I too have been very concerned over the market fluctuations and believe we will see at least one more downward trend before we can return to a true Bull market. I was happy to see the NASADAQ close 342 points up this week but I have been very hesitant to reinvest in the tech sector. I currently hold
EMC & Microsoft and I have been watching Cisco. I believe that the return of the semiconductor sector may single a slight upshift in the tech sector but the only indicator was a buy on Intel which of course means do not buy it yet, I have been watching for any strong buys and have been disappointed..
I question your use of puts and caution you not to trade as much on margin, your end of day loses can look consitently high and still incur a high cost at months end.
Buying back the calls can be an intelligent descision if you have enough float, if not your valuation my remain in decline IMO.
28% was excellent for this week as the market only surged by 15%. So it may be working for you, but you are operating to far on risk for me IMO.
<font size=-1>[ This Message was edited by: David DiFabio on 2001-04-14 12:05 ]</font>
Hello, David. I gave the wrong impression: I'm NOT doing many "naked" (cash secured) puts right now. Not the time. I'm mainly selling calls on stock put to me some time past. Buying back at 30% of what I was paid and then letting it run up to at least the cost basis before selling/writing another call.
As for margin: I've cut that way, way, back to only that which I have, i.e: trading a margin account as if a cash acct. Lowers my leverage, but lowers risks. I never want to see another margin call.
Anyway, easy dot.com, easy dot.go.
PS: By the way, I've made quite a lot on a stock whose ticker is NVDA. Right now's not the time, but if you can find it down at about 50, buy a couple of hundred shares and sell the closest call you can. I got in at 70 sometime ago on a put and have done very well on this one. NVDA is Nvidia. Look at their profile; I think you'll like it.
Take care. By the way, may I say that I'm amazed by your posts? I've seen you post on a hundred different subjects on this and other boards and have been amazed by your command of the language, dignity in addressing the subject and the other members, and your breadth of knowledge. Everything from investing to Hi-Powers. It puts this ole' country lawyer to shame.
Sir, thanks for the kind words. I appreciate them. I'm not an "expert" at anything and learned never to allow learned counsel to trap me with that on the stand in my carreer as a police officer. There are many, many, many right HERE who can put my meager abilities to shame, but I do happily share my views and experiences.