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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (3564)3/24/1998 6:25:00 PM
From: Allen Furlan  Read Replies (1) of 78595
 
Many ways to skin the cat. Buy 100 shares at 20, sell Nov 17.5 put and November 22.5 call for about 5.5. If you own 200 shares in Nov(stock below 17.5) your cost of 200 shares is 16((20+17.5-5.5)/2) and if stock takes off you make 55% in 8 months. However I am with the Count, the downside risk is very great. If the stock breaks below 15 the buy stock,sell put,sell call strategy would be very attractive. Look at IECE, the darling of IBD, now at a new low because of customer problems.
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