Poet, & LoF too
I'm neutral on the T vs WCOM debate. I lost money on both of them earlier this year. <gg> I did join the party today though on the WCOM side.
I bought 2002JAN25 call, and sold 2002JAN25 put plus sold 2002JAN35 call for a net debit of 1/8. Depending on your point of view, this is a call debit spread with a naked put on the side, or synthetic long stock on the strike 25 with a covered call at 35. The carrying cost is the premium received for the put, plus my broker's margin % on the underlying, currently about $6.75/share total, or $2.875 of my money. It's a long way till payday on the spread, with a potential gain of $10, but if WCOM jumps I can buy back the put early and be left with the call spread, and if it goes down I can buy back the short call and be left with the synthetic long to ride it back up. It's an idea I am playing with on a small scale, and I will update from time to time.
Dan |
