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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: Paul Fiondella who wrote (29743)1/3/2000 7:41:00 PM
From: Scott C. Lemon  Read Replies (2) of 42771
 
Hello Paul,

Thanks for the info, one more question ...

In your previous example, you seemed to indicate that the covered calls could protect you from potential downside (or maybe I read incorrectly) ...

For example, if I sell covered calls as Feb 35s and get some immediate cash (lets say a couple of bucks), then the price falls ... let's say to $25/share. In February I'll still have the stock worth $25, and will have received the couple of bucks a share meaning that I now am at $27/share ... if I can still sell the stock at $25.

Is there a way to protect against this slide?

Scott C. Lemon
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