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Technology Stocks : ZENITH ELECTRONICS

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From: Franco Battista	5/4/1996 9:33:00 PM
	of 578

In a way you answered your own question. As you said in a momentum play options are no riskier than stock. The options give you more leverage. The stock is nice to own because you can write covered calls. For example I own Iomega options and I also own Iomega stock. I like to buy deep in the money options and that is what I bought on Iomega. I pay a very small premium for deep in the money options and I have all the upside. With the stock I could now sell October 70 options for about 10$ a share! I will wait for the stock to rise five more points and then should be able to sell Oct. 75 options for about the same price. It is a wonderful situation. You can buy deep in the money options for a very small premium and sell far out of the money calls for a huge premium. I hope my babbling somehow makes sense to you. Happy trading!

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