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Technology Stocks : Cymer (CYMI)

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To: Curlton Latts who wrote (9714)11/14/1997 8:16:00 PM
From: Zeev Hed  Read Replies (3) of 25960
 
Curlton, not all options strategies are equal. Wrting covered options on stock you own and intend to own for the long term is an extremely wise and conservative strategy, particulalrly when the writing is done on rallies and out of the money. Lokk he got a buck each for 5 weeks and the stock is at about 21, even if it s called away, he is going to make $5/share on $21 this is a fantastic return in 5 weeks. If it is not called away, he lowered his cosst and if he thinks there are still dangerous waters ahead he can repeat this on the next mini rally.

Zeev
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