YEEHAW CANDIDATES Message Board

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Strategies & Market Trends : YEEHAW CANDIDATES

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To: PuddleGlum who wrote (23934)	5/4/2009 10:24:18 PM
From: Ken W	of 23958

Hi PG At the time that selling covered calls was first mentioned the market was very very scary...the idea was to mitigate some of the risk by having a short position against a long position for some downside protection..Now that there seems to be a somewhat fragile trend in place maybe selling CC's is not the best policy, unless you have a longer term view of things and are willing to sell the out of the money calls at least 4 to 6 months out, thus earning a considerable time premium. All that being said, congrats on your 50% gains!!! Personally, I am still selling calls with some out as far as Sept. but, way out of the money...if they get called away I make money both ways. DRYS Sept. 12's for example. OCNF 5's etc. In DRYS recent earnings report the CEO alluded to the fact that the company was well positioned to take advantage of the "long awaited consolidation" expected within the sector. Since ONCF is owned by his nephew I'm betting that ONCF is on the short list of DRYS first purchase. Today's volume on ONCF seems to indicate that something is afoot!!! Even with the dilution, ONCF turned 90% of their outstanding shares over 1.52...closed at 1.76 and over 2.00 in after hours. Ken

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