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Non-Tech : The Critical Investing Workshop

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To: Len who wrote (5660)2/29/2000 10:53:00 PM
From: Dr. David Gleitman  Read Replies (1) of 35685
 
Good evening Glen:

Timing is an important factor in rolling calls. I have found that if you are fast approaching options expiration, you should time your roll as late as possible. This can make the difference of a point or 2. As you are approaching 0 hour, you now have the maximum differential working in your "favor" to roll your calls into the following month. If you can refer to a post made earlier today, I bought back my 230 JNPR calls for about 10 and rolled them into the March 270s at 17, buying myself an additional 40 points of breathing room / appreciation as well as receiving an additional 7 point for the asking. In the case of JDSU, I bought back my calls when there was a pullback, sold them again after an advance, continuing the cycle.

David
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