Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: 100cfm who wrote (17)	12/26/1999 2:47:00 PM
From: Jill	Read Replies (1) \| Respond to of 8096

That's a really savvy strategy. Reminds me a bit of PAL's options trades, which are usually calculated to take in cash that pays off other purchases. Poet and everybody, what options plays are you considering this week? I would like to buy calls or leaps on any significant QCOM dip, and may also buy some moderately OTM Gemstar calls since it's now on the public radar and the calls I now hold have gone up 400% in just about 3 months. Jill

To: 100cfm who wrote (17)	12/26/1999 3:00:00 PM
From: Poet	Read Replies (1) \| Respond to of 8096

Hi 100, A question about your strategy. Do you buy shares on margin and also buy calls, using the profits on the calls to pay off margin? If so, I think you may be to ramp up your strategy by simply buying calls, selling some at the expiration date, and using the profits to pay for the purchase of the remaining shares-- thereby eliminating taxes on the exercised shares (until you sell them, of course). I have done this with JDSU and QCOM over the past six months, buying, say, 10 calls, calculating how many I would have to sell at a particular price, and using the profits to pay for the exercise of shares. It's help me build up a nice core position in both stocks.