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Technology Stocks : Network Appliance
NTAP 111.56+2.1%12:59 PM EST

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To: Uncle Frank who wrote (5967)1/26/2001 6:33:15 PM
From: SPSEIFERT  Read Replies (1) of 10934
 
Uncle Frank What is wrong in buying all of the ntap you can afford and sell out of the money 30-60-90 day covered calls. If the stock gets taken -so what- rebuy and sell more calls. The volatility has introduced unbelievable call premiums. Worst case is if ntap tanks. Long term [which i am] says sit tight and when the next peak comes just repeat the process. If you lose - the stock gets taken. If you win -just be patient until it comes back. This whole storage area is so predictable that there is very little risk medium term and I think great returns are to be made by intelligently managing the volatility. Your thoughts are appreciated.
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