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Strategies & Market Trends : Roger's 1998 Short Picks

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To: space cadet who wrote (15237)11/10/1998 6:03:00 PM
From: Greg Jung  Read Replies (1) of 18691
 
If you can't stand the thought of naked shorting of amzn just
go long and sell a Nov call deep in the money. You'll even have a little premium to pad the transaction costs. Come expiration week if the stock has pulled back, cover the call and roll out to a December call deeper in the money. What's the catch with this type of play? I suppose it would only continue until your stock is called or the price drops like a rock far below the strike. You thus would need some sort of put that would raise costs.

Greg
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