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Technology Stocks : Helix Technology, a cold play on semiconductor equipment -- Ignore unavailable to you. Want to Upgrade?

To: Raymund W who wrote (704)	10/6/1999 10:39:00 PM
From: Astro59	Read Replies (1) \| Respond to of 1227

Best covered call write I've seen in a long long time! Helix is selling for 35 15/16. Jan. 40 calls are going for 4.5. That's 12.5% of the current price. Buy the stock and sell the Jan 40 call. That's called writing a selling a covered call. If Helix goes above 40 your stock gets called. Your return for a 3 month investment is 23.6%. If the stock gets called, you get a $8.5 profit (the $4.5 you got for the option plus the difference between $36 your stock cost and the $40 call price, i.e, $4 -- $4 + $4.5 = $8.5). That's a 3 month return of 23.5% (8.5 divided by 36)!!!!! If HELX stays where it is, the option expires worthless. You keep the $4.5 you got for it and keep the stock as well. That's a return of 12.5% HELX can fall to $32.5 and you still haven't lost a dime ($36 minus the $4.5 you got for the option = $32.5). This excludes commissions, but your return even after commissions will still be substantial. All you have to do this is 100 share lots. Each call is for an option on 100 shares. Do at least 2 calls and 200 shares as this lowers the commission costs. Not too shabby if you ask me. :=))