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Technology Stocks : TECD - Tech Data

TECD 144.90

0.0%

Jun 30 5:00 PM EST

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To: Herman J. Matos who wrote (83)	2/10/1997 12:45:00 AM
From: Baggins	of 584

No, I meant getting in and out of the options. However, I got a feeling that things might get a bit irrational at times and that's where the chart might help take advantage of some opportunities. In any case I was thinking that it might be worthwhile waiting for an uptick before writing the call. Some of these stocks I watch have a tendency to pull back a bit. What's the attraction of in the money calls. If you expect the stock is on the way down the strategy makes sense, but if the underlying stock has healthy earnings growth and the overall trend is up why not raise the striking price and keep the appreciation and the premiums. The one thing that puzzles me is whether or not people wait till the last minute to exercise. If the stock takes off and passes the striking price do people tend to exercise or do they tend to hang out and wait and see what happens. If you write an out of money call you get some breathing room before this happens. If the call is written below the current stock price then your stock can get yanked at the first upturn and you got to start all over again. What has been your experience? Sorry if I rambled here.

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