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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: PJ Strifas who wrote (29735)	1/3/2000 2:10:00 PM
From: Paul Fiondella	Read Replies (1) \| Respond to of 42771

Well of course you lose the stock if it is above strike on expiration What this does is prevents you from going crazy trying to time the sale like Scott was doing. Also Scott is worrying about a down move. The call protects you there too. On the upside, you can try selling well out of the money calls much farther out in time. For example, a 45 call for 2002 (a leap) sells for $15. You get $60 but above 60 you don't get anything more. You can stretch the gains and buffer the losses but you can't have both ways.