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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 242.37

-0.8%

10:30 AM EST

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To: Alomex who wrote (818)	11/19/1997 10:21:00 PM
From: Oeconomicus	Read Replies (2) of 164684

Carl & John, if you want to try to soak up some of the rich premiums on the options, there are much safer ways than naked call writing. Try a "long butterfly" or "long condor" to benefit from the decay with limited losses if the stock moves far either way. On the other hand, given that this stock is not expected by anyone to sit still for very long and that the premiums are rich, the opposite positions, i.e. "short butterfly" or "short condor", would allow you to pocket a net credit if the move is far either way with limited downside if it sits still. BTW, I'm not explaining these positions here because, if one doesn't know what they are or doesn't have a good book to explain it, then one probably should not do it. Bob PS: If you really know your deltas, how 'bout a "put ratio backspread"?

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