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Technology Stocks : Veritas (VRTS)
VRTS 164.24-0.2%3:59 PM EST
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To: AnnieK who wrote (180)4/27/1998 4:59:00 PM
From: The ChrisMeister  Read Replies (1) of 742
 
AnnieK,

Writing covered calls might be a way to get a little income if you can call it right -- pun(s) intended -- but you might also have your shares ripped from your hands by a big bull move. Remember, this stock has traded at a P/E over 100 at times, which would put it up over $75 relative to today's price (53 or 54) and P/E. There's not much of a market (these days, at least) in those way out-of-the-money calls, so it may not be worth worrying over an order that might not fill. I guess I leave this strategy to the pros, because it's got limited profit potential and unlimited risk in terms of profit not realized if you get left behind. But if you need a short-term loan... Have you considered a spread strategy in case things go the wrong way on you?

With that said, the Aug and Nov 60 and 65 calls certainly looked dirt-cheap today at the lows. Hard to imagine how they couldn't be way in-the-money at expiration time -- or even much, much sooner...

ChrisMeister
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