Healtheon Corporation (HLTH) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Healtheon Corporation (HLTH)

HLTH 0.120

0.0%

Sep 10 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Kip518 who wrote (601)	4/7/2000 1:51:00 PM
From: JH	Read Replies (1) of 861

Yes, the plan I outlined limits the profit to the premium collected. I find the trade very rewarding from a risk/reward standpoint, given the available information surrounding the stock. My view is to capitalize on the assumption that the downside risk is limited on HLTH due to the buying support from the Directors. Half of my position is still LONG, from the call options which I bought earlier this morning. If HLTH demonstrates that it indeed has more upside potential in the short term, I can easily buy more call options. In that case, my preferred strategy is to simultaneously sell some out of the money calls against any naked calls which I buy, to reduce the cost of entry. Since the IVs are pretty high here, a naked call is relatively expensive. If HLTH rallies tomorrow, I will be looking to sell a cap on the calls which I bought this morning. Otherwise, I anticipate a retracement pullback in the short term which can be used as an opportunity to buy more naked calls. Caps can be sold on future rallies. / John

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next