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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: AmericanVoter who wrote (11217)	6/30/1999 1:38:00 PM
From: PAL	Read Replies (1) \| Respond to of 19700

Hi Amein: I will have to be out the whole day, so I'll answer your question more in detail tonight. Right now, I would not do anything on CMGI, either buying/selling the stock or buying/selling options. wait until all this euphoria settles down. Best wishes Paul

To: AmericanVoter who wrote (11217)	7/1/1999 1:10:00 AM
From: PAL	Read Replies (4) \| Respond to of 19700

Hi Amein: Right now CMGI just had a runup becuase of AV and AG. If you need to sell put, I would do a triple play: Buy CMGI at $ 110 (you probably can get it tomorrow) - It cost you $ 11,000. Sell LEAP Jan01/110 at $ 43 (you get $ 4,300) and sell Covered Call LEAP Jan01/110 at 52 (you get 5,200) So your CMGI will cost you $ 1,500 or ($ 15/share). The probability that CMGI will be over $ 110 by Jan01 is higher than it is below $ 110. So the stock will be called away. Well, it is OK. Your cost basis is $ 15 and sell at $ 110, over six bagger! (This is better than just holding the stock. To have over six bagger, CMGI has to reach $770/share by Jan01) The risk: If CMGI is under $ 110, you will ahve to pay $ 110 for another 100 shares. So you will have 200 shares at $ 125 divided by 2 or $ 62 1/2/share. If CMGI > 62 1/2 by Jan01, you make money ( well don't discount to the present value). What are the chances of CMGI trading less than 62 1/2 one year and a half from now. Between now and Jan01, you can even play those two options, like when the market is negative, buy back the CC at lower price, and sell the CC again when it rebounds. The same thing with the put on the other direction. That makes it possible for the cost basis to be negative. I prefer LEAP PUTs on CMGI, but there is nothing wrong with selling Aug100 puts at 8 3/4 or Sep100 puts at 12 1/2. If you are assigned, you are buying CMGI cheap, and then use the LEAP Jan01/100 triple play. If CMGI stays above 100, well those puts expire worthless, you are given money to buy more CMGI. One caveat: as always, when dealing with naked options, be prepared to monitor the account so that you are not overextended. those margin calls are unpleasant and could be destructive to your investment. One final note: the reason I like to do this with CMGI is twofold: a) I believe in the future of the company and 2) the premium is so rich There is no other stock that I know that has those two characteristics. Best regards Paul