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

To: Jill who wrote (601)	1/3/2000 7:34:00 PM
From: Poet	Read Replies (5) \| Respond to of 8096

LOL! You're giving away my secrets! Not to confuse those who are buying GMST Aug calls, but I've got to chime in that my strategy is a bit different. I'm loading up on May 45's and 60's, pretty DIM with a higher delta, and plan to roll them up and out to the August, highest-strike-available, if GMST moves in the next few months. It may be a more lucrative way to play GMST. Check your numbers. By the way, I'm assembling a basket of good B2B stocks (following thr e-commerce thread led by Teflon, whom I really admire) and plan to post some ideas on B2B option plays once I'm off my back. I think these stocks will do very well and options plays are a great way to accumulate shares at a good discount. Is anyone interested?

To: Jill who wrote (601)	1/3/2000 11:38:00 PM
From: dwayanu	Read Replies (2) \| Respond to of 8096

Hi Jill. Ref your Palm IPO question on another thread, 20% of Palm will be sold by COMS at the IPO probably in February, and the remaining 80% of Palm will be distributed to COMS stockholders "2 quarters later". Merrill's breakup analysis values 3Com at $33-53/share, with Palm at 40-50% of that. I think that Palm value is conservative short term because of typical IPO enthusiasm these days. I'm looking to pickup Palm shares LTB&H as a wireless endpoint play, and I'm playing it with some July $45 call options on COMS that I got a few weeks ago slightly OTM. IMO it looks too risky to hold all the options for a single play, so I'm planning on selling parts over the whole timeframe from initial IPO runup in Feb to (hopefully) well appreciated post-IPO in July, dodging around a presumed 2-month correction somewhere in March-June timeframe. I'll pick up COMS shares by exercising a portion of the options, financed by selling the majority of the options, where the option sale price determines how many shares I can afford. All opinions on this strategy would be appreciated. - Dway PS: Added value play - after the Palm distribution to COMS shareholders, take delivery of the COMS shares and redecorate the kitchen, gotta figure COMS shares are going to be cheaper than wallpaper :-)