Options Message Board - Msg: 12451796

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Strategies & Market Trends : Options

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To: Poet who wrote (607)	1/3/2000 7:51:00 PM
From: Wyätt Gwyön	Read Replies (1) of 8096

SDLI--King or Serf, I dunno (I guess everyone's part of the Royal We in fiber-optics), but fat option premiums fer sure...Sold Jan220 puts today for 26 w/underlying around 210ish? perhaps. Other week sold the Jan175s for 25 and did a buy-write on the 180s for a 16% monthly return (179 underlying - 24 call premium = 155 cash out; return is 180 - 155 = 25 if called out [probable]; 25/155 = 16% return; LOL!). If you investigate the co. and find them of interest, it seems option sales (short puts, covered calls) provide a good avenue. Cash in hand can then be deployed long in lower-premium ITM call plays on JDSU (for example), thereby gaining a return on your return (The postman always rings twice. LOL!--I'm easily amused these days...). Nice thing about put sales: you don't have to "ask a lot" of your stock--just stay even, or go up slightly, or only go down slightly, as suits your fancy. What's the rush?

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