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Old 11-30-2004, 01:38 AM
theTourne theTourne is offline
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Join Date: Sep 2004
Posts: 23
Default Re: Who \"gambles\" in the options market?

Hi RMJ,

This is interesting for me - though I know basically nothing at this point. If you don't mind, I have a question. If you're going to write some puts, as in your example, how do you decide how many to write? I understand that you use this strategy as a "cheaper" way to get into a stock, but the upside seems pretty limited (the price of the put times how many you sell), and it seems fairly risky. How do you decide how many you can afford to write?

Thanks,
Tourne
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