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Strategies & Market Trends : Options

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To: uel_Dave who wrote (3426)	2/23/2000 12:42:00 AM
From: Jill	Read Replies (1) of 8096

I was extremely careful, and sold April 175s for around 5 1/2 or 6. I did this probably at the high of the day, just pure luck. The reason I did this was because I analyzed my cost basis and what I would truly be content with if I got called away. Some of my shares were acquired way back, but the most recent were DIM calls 82 1/2. So I figured if I applied those (my highest cost basis) it would still be more than a double, and I could be satisfied with more than a double if by a slim chance I got called away. That is not a very aggressive stance--as for instance I know Poet sold March 145s and got the same $6, but I would be very unhappy in the unlikely event I got called out at 145. I have not done a lot of cc selling--as I said, it doesn't really fit my style. But it looks to me like Q will be in the doldrums for a while, so I might as well make a bit of $ off of it. So my recommendation is as follows: find the strike price you truly feel comfortable with if you get called away. Then pick a month where the premium seems reasonable enough at that strike.

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