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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: AurumRabosa who wrote (6878)	9/25/1999 10:13:00 PM
From: Gersh Avery	Respond to of 11051

wellll .. what else would you call owning INTC for $0 in one move? I'd rather put the time premium in my pocket than someone elses. Now then .. suppose that you thought that .. say $65 was a good price for INTC .. and the stock has been setting flat at ~$75. OK .. deposit the cash to cover the stock being put to you in a interest bearing account and short a short term at the money put. If it gets put to you the first run sell it and short another put. If it doesn't get put to you, sell another. About the same time that the second would expire you would have received enough premium to cover the difference between the 65 and 75. Each put that you sell pump the proceeds into the same interest bearing account. At some point the stock will be put to you. It's basicly up to you to decide what your net landed cost of the stock is. Now .. as for naked .. wellll .. I wouldn't go selling puts if you didn't have the cash to cover if you had to. In addition I wouldn't want to sell puts on a stock that I wouldn't want to own. Your broker?? If he doesn't have the stones, he is in the wrong business. Selling puts is one of the most conservitive methods of building a portfolio. The fact that he hasn't mentioned it to you speaks volumes. Gersh