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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: Vincent Chong who wrote (14715)10/13/1998 5:07:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 27307
 

To answer your question, I think a safer way to play this stock, if you own it or plan to
own it, is to sell cover call and use the money to buy some put. The exact strike prices
must be chosen wisely. If the stock moves up you can sell the stock buy the call back and
wait for it to come back down to sell your put. If it goes down after you buy it, you can
cover your call and sell your put. It is easier said than done but it can be done and does
minimize one's risk in a volatile stock like this one. If everyone is doing this, I think the
volatility of this stock will decrease over time.

The premiums for this stock are rich. They are very rich. The wise move is to sell the options not buy them and keep the premium. Buy long shares and write covered calls on a bounce. Sell short at that point and wait for a dip and then write covered puts on your shorts.

Repeat each month as necessary.

Glenn
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