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Microcap & Penny Stocks : DESWELL - DSWLF(9.00) and DSWWF(1.25) - PE ratio - 6.5

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To: j rector who wrote (13)1/6/1998 10:37:00 AM
From: Allen Furlan  Read Replies (1) of 20
 
This is a play for the future , put it in your tickler file. Condition 1 is that warrant have little time value and is an inexpensive proxy to stock, therefore a call to convert the warrant squeezes out my time premium but, other than requiring a commitment to capital, has no adverse affects which are differnt than owning an option. The second condition is that the short options have decent time value. I have been writing ntaif calls and puts and the volume has been pathetic and the premiums rather low. A tip, should you trade always check for multiple listings, so far ntaif premiums have been better on chicago than on american exchange. Should the stock spike up in the future, so as to fulfill the callability criteria, the time values will also probably increase. As to the selection of strike and time, the choice depends on your risk reward tolerance. Most likely I will do a ratio write of near term slightly out of the money calls.
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