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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: KFE who wrote (1463)5/29/2000 8:56:00 AM
From: dealmakr   Read Replies (1) of 2317
 
Ken,

I get the rag in my PO box every Sat. AM and sack out on the couch for a few hours, it gives me some time away from the puter <LOL>. Now I will definately know if a bottom is in if Abelson turns bullish, but he's been bearish for the last 9000 Dow points or so. He does come up with some good tidbits every now and then though. I did like the piece about the Netsol/Blue Water Funds, oh what a tangled web is weaved. May as well have painted a big bullseye on the stock for a target. I will be looking at opening the call side of CEGE June straddle this week, will probably have to settle for less than I was looking for, but I don't want to lose the stock for less than $20 short term, long position bot between 16 1/8-18 1/8 and have written 2 months of expired calls on most to reduce costs to 14 ish. Here is another one in the biotech sector that I am looking at, but have no position.

GENE Friday close $14

GUGAC Jan 15C 6 1/4-6 3/4
GUGMC Jan 15P 6 3/4-7 1/4

Margin req. for 1000 shares $7,000
Prem recieved for write of options $13,000

Return if stock is over $15 in Jan looks to be very fat. This isn't a recommendation, just a play that I found interesting where you get quite a bit more cash than you lay out on margin.

Good Trading

Dave
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