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I agree with this of course, but let's face it - alot of people to try gain leverage would spend $10,000 on the stock or $10,000 on the calls (doubling the shares controlled). So, you can now lose $10,000 either way. And, using Lenny's sell for any gain rule, you would barely get any gains...

Yeah, but read his post again - he said the same whether selling options or going long the underlying stock. Selling Calls is certainly not the same risk as going long the stock. I agree that it's the same as going short. He didn't make it clear enough in his post that he was referring to...

Not for all options - I assume you are referring to put options that are sold short. How about selling call options however: If a person sells a 50 strike call for $300 and the next morning the stock gaps up to $500 (not likely I admit), they are underwater about $45,000. If a person...

I think you know what you are talking about. I could hardly believe it when I first saw how low of targets per trade Lenny was targeting! Trying to make $1 per contract while risking a large number of $s per contract just doesn't make sense to me. When I first read some of his articles I...

I just wanted to add one thing to this topic - I should have complained more at the time maybe, but I wasn't a trouble maker type, etc. Anyways, in college (this was a small state technical college), I had a female English teacher who would go on mini rants about how women were viewed as...

Yep, Those were some of the lines I was thinking of when I read your post. JJacksET4

That reminds me of the Brad Paisley song "I'm still a guy". http://www.youtube.com/watch?v=ZaQ7ajWwFPI

lol - Can I guess they were playing "momentum" stocks? I can see the sales pitch now...."This stock could go so high that even though the price is only $xxx, you can safely pay up to $yyy for this call" I would agree they likely had a poor percentage chance per pick. No doubt trying to...

Geez. Some track record that is - that would actually be hard to do if you tried. If my math is correct, given a 50/50 shot of loss or profit, 23 losses is a row should be around 1 in 8.5 million. JJacksET4

I think that's what Mark is saying: "Less risk in...." So admittedly there is risk in the trades themselves, despite the hyped up claims of many option newsletter sellers. In fact interestingly, there is one options picker I am aware of who shows all his results in % gain, they look...

That's hardly a good criteria to use for getting high quality stocks. A stock can go from $5 to .50 as well and that 5 strike put sale doesn't do so good then. JJacksET4

I wouldn't rely on that as a guarantee. I imagine there were plenty of shares held by directors at some firms that went Chapter 11. Honestly, I'm not an expert in this area, but I can't imagine a company would never go Chap 11 just because some directors own some common. Also, even if that...

Mizhael, I would hesistate to recommend any specific strategy because quite honestly different strategies have different risk/reward ratios, different margin requirements, different risk levels, etc. and the same strategy that might work for one person could fail for another person (i.e. a...

Of course, I'm guessing here, but I think the OP is either saying that there is a credit up front - which of course is different then a profit from the start or he is saying that if the stock doesn't move much it quickly becomes profitable - which of course can quickly be ruined by either large...

asdfghj7, regarding the possibility that a stock could go to the moon and cause unlimited losses, remember that you are not glued to strategies as they are written up in books, etc. You could simply add farther out of the money calls to protect you in this scenario. I have done this...

Mizhael, I just wanted to comment on this quickly. I think it is easier looking back after a day like today and think that a person should have bought some short term calls and especially on financials, but you have to remember that the market reaction isn't always (and in fact often isn't)...

Mark, I understand what you are saying. I just like to have more options (no pun intended) available. Also, remember that AIG is still valuing out as about a $4 billion market cap company. I don't currently have any interest in playing AIG either bullish or bearish, but if I did, better...

I had also heard or thought strikes only went to 2.50 or 3.00. It honestly doesn't surprise me they would add $1 and $2 strikes however - why not take advantage when you know there will be volume? And I just looked at AIG and there was decent volume there for those strikes. Personally, I...

I've been wrong plenty of times before, but I agree with you here. DRYS is probably too cheap or at least the risk/reward ratio would be terrible for selling calls IMO, be it Mar or Apr. Maybe a Call Ratio Backspread might work, but then again, it would be better if DRYS had every dollar...

I wonder how long it will be before someone suggests that some Senators and Congressmen should have some dignity and kill themselves. That Dilbert cartoon is right on. Actually, when the execs from GM, F, etc. were there in the hearings, I was kind of surprised they didn't turn it against...