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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: snoozlooze who wrote (3976)7/18/1999 12:45:00 PM
From: Uncle Frank  Read Replies (2) of 54805
 
Hi, snoozlooze, and welcome to the thread. We can always use another Gorilla Hunter in our band <g>.

My strategy with cc's would be to sell short term out of the money calls during periods when I expect the market to be flat or down and there are no critical events for the underlying issues. My intent is to pocket the premiums and keep the stock. This is really a cash generating scheme (about the only way I can put new money into my IRA) and not a hedge against a down turn, as I can only pick up a few percent a month for out of the money calls.

Please fill us in on jdsu. Is the merger still looking accretive in the short term? I think I heard something about a secondary <dilution>. How do the shareholders think this will affect the stock?

Frank
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