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Microcap & Penny Stocks : Globalstar Telecommunications Limited GSAT -- Ignore unavailable to you. Want to Upgrade?

To: David Wiggins who wrote (7083)	8/31/1999 8:38:00 PM
From: Ira Player	Read Replies (2) \| Respond to of 29987

What strike did you buy? I feel the premiums are a bit stiff. I did a stock buy, covered call write today using October 25's. Bought mid day -- Buy = $24 7/8. Sold October 25 calls, YVQJE, end of day -- Premium = $3 1/2. Basis after premium -- (Buy - Premium) = $21 3/8 Profit at Strike -- (Premium + (Strike - Buy)) = 3 5/8 Percentage on flat market -- (Premium / (Basis)) = 16.37% Percentage if called away -- (Profit / (Basis)) = 16.96% With premiums this high, why buy options. Selling may be the better path. If someone is willing to pay me a 13.7% premium (stock was at 25 1/2 when option sold) to rent the stock for 45 days, I think I'll rent it to them. Enjoy the ride, Ira