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Technology Stocks : Ampex Corp: Digital Storage
AMPX 7.887+0.7%Dec 31 3:59 PM EST

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To: HPilot who wrote (2484)4/5/1997 9:29:00 PM
From: Ed   of 3256
 
Your "bullish backspread" is very intriguing and appears to carry lots of upside potential. Plus, you're not using any of your own money!

Question: I understand that you sell naked Oct 5's, correct? If so, what type of equity or underlying stock position does your broker require in order to establish such a position?

I would also presume that executing such a strategy would not be available in a retirement account due to selling the naked calls, correct?

Provide me with more info on this "bullish backspread" as to what criteria you look at before jumping in. For instance, it appears that a lower price stock of a solid company can substantially limit your downside risk (ie, it's already "beaten down").

I really want to learn more about this technique since it involves the OPM formula. Really sweet technique. Thanks, Hugh!
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