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Strategies & Market Trends : Options

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To: Tom K. who wrote (7773)5/10/2000 10:00:00 AM
From: PAL  Read Replies (1) of 8096
 
Tom,

As I posted a few days ago, I was looking at selling JDSU June80 and June75 puts. but the market kept getting weak. Jun60 puts would now be my preference as well. If you look at the JDSU the past 2 months, even at the worst day, it never closed below 70, so you are playing conservative, and it is even better than Jun65 puts. Nevertheless, I would be ready with an exit strategy if that etek merger is not approved.

On another topis: naked calls is not my style, hence I have not given too much thought nor have I weighed the ramifications. However, you have presented a compelling issue that it could be a profitable strategy in current market environment. Your strategy can enhance returns on your cash position. I will dig deeper and consider the pros and cons of a naked call.

Thanks for sharing.

Paul
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