Replies to post #41996 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

HI Ray

I tend to SELL options.

Having said that I will

1) Sell an out of the money put at a price I am willing to buy.

2) BUY a deep in the money CALL at about half the current price. There is very little time premium at a price that low and you are putting up half the money. I will then SELL an out of the money CALL to pay the minimal time premium.

3) I will SELL calls at or above a price I am willing to sell.

So that is how I use options.

Toofuzzy

[Toofuzzy]

HI Ray

I was able to sell $7.50 Dec CALLS on STKL for $1.20 today.

If it gets called my effective sales price will be $8.70

Meanwhile my next Aim directed sell price is $8.26 and I have shares I can sell at that price also.

If it goes down from here I will sell some more puts for $7.50 for a out $1.00

I try to do most of my options in my ROTH IRA for tax reasons.

Toofuzzy