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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: pompsander who wrote (27962)	8/28/1999 1:22:00 PM
From: jmac	Read Replies (2) \| Respond to of 93625

i write covered calls all of the time. but, writing calls against RMBS now doesn't make much sense. the 4 points you get for writing the sep 155s only protects you to the downside by 4 points. if rmbs gets bad news during the INTC conference, then 4 points is going to look silly. it also limits you on the upside. writing calls against rmbs during aug made sense. no imminent news was pending. but, now, the news is known to be coming out. this stock is going to rumble--in one direction or the other. i don't want to limit my upside right now just to get 4 points. i still haven;t made up my mind whether i am going to sell the shares and buy the calls or keep the shares and buy some put protection. either way, i want some protection to the downside but want to play the upside the fullest possible extent. i think the INTC conference is going to be great for INTC and other chip stocks and chip equip stocks.