My income portfolios are where I am making the largest changes based upon the rally. In my IRA, I have taken money off the table in some slightly bullish spread conversions such as Dell, Lucent and Keane. What is great is, though I sure didn't expect it, the out of the money put portions of those spreads (the spread conversion is long stock, short at the money call, long out of the money put) have held up amazingly well given the price appreciation. So, I make money on the buy write and lose very little on the long put. That is nice in the income area.
Mike, I love the idea of using some nutzo, dividend-free stock like Dell in an income portfolio. For the options-challenged, is that a combo of covered call and protective put ? The details of the Dell position would be great. Thanks for all your help, especially CCU<g>.
John |
