Compaq Message Board - Msg: 12157125

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Technology Stocks : Compaq

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To: Night Writer who wrote (72950)	12/1/1999 2:18:00 PM
From: rudedog	of 97611

NW - Technically you are correct. However, there are degrees of "long" and "short". When you sell covered calls, all you will ever make is the premium, and you make that as long as the stock does not rise (much) over the strike. So it is much less bearish than buying puts, where the lower the stock goes, the more you make. There are of course considerably bolder short plays than that. I don't regard myself as a bear but I routinely sell covered calls... I personally would not sell LEAPs... but the notion of just buying the stock as the price passes through the strike seems like an OK hedge, if you have the money and are comfortable owning more of the underlying...

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