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Strategies & Market Trends : Options
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To: SecularBull who wrote (2601)2/9/2000 3:10:00 PM
From: PAL  Read Replies (1) of 8096
 
Lof:

Each option has the advantanges and disadvantages. That depends on the need. For example: I like to sell s/t puts and use the proceed to buy leaps calls. this is a variation of synthetic long. the stock involved is not necessarily the same stock. when i buy calls i prefer using opm.

here is an example of my recent trades:

12/6/99 sold several of ocli feb/240 puts at 40 7/8 (now 5/8)
use the proceeds to buy csco jan01/100 calls at 14 7/8 (now around 40).

while the ocli puts will become worthless in 10 days, thus freeing margin, and have more capacity to sell more puts, the csco leaps keep climbing, even split 2:1. those calls are free to me.

btw ocli was converted into jdsu on feb 4.

paul
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