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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: KFE who wrote (1398)4/28/2000 7:18:00 AM
From: dealmakr   Read Replies (1) of 2317
 
Hi Ken,

CEGE is also one of my current favs for the same reasons. A good trading stock as well as a long term position. Bot a long term position @ 18 on 4/12 and when the market tanking occured was able to write the Apr 17 1/2 CC's for 1 13/16- 1 15/16 that expired to reduce costs and wait for a bounce. Currently have CC's written for the May 20's @ 1 3/4 and am short the May 17 1/2 puts @ 2 1/4. Will also be looking at possibly shorting some longer term puts for some of that good premium capture. Have been writing a lot of CC's lately as the market churns and some naked puts on stocks that I would like to own. Volatility is great for keeping those premiums high on some of the beaten down stocks and the % returns on strategies such as your straddle can provide a nice return on capital if the underlying stock behaves accordingly.

Good Trading

Dave
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