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

To: Poet who wrote (607)	1/3/2000 7:44:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 8096

I've also got some May 60's, but I couldn't resist the August 85s as well, they're giving them away at $9. A few thoughts: 1. The TA for GMST doesn't look great right now (vendit where are you). So I expect continued consolidation for another week or two, which makes this a good time to accumulate. 2. Earnings are Feb 15 3. Tech stocks are traditionally weaker in the summer. 4. The GMST/TVGIA merger probably won't have further announcements for a while, I suspect they may have a lot of competition issues to answer to the FTC. This means August is probably a better bet than May for GMST to make a move. 1 implies accumulation should be good for the next couple of weeks, then expect an earnings run from the end of Jan through the first week or so of Feb. That might be a good time to roll over into August calls. 3 implies another accumulation period, maybe in June or July, at which time it might be good to roll out to later months, to get ready for hopefully a super 3rd and 4th quarters. JMHO

To: Poet who wrote (607)	1/3/2000 7:51:00 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 8096

SDLI--King or Serf, I dunno (I guess everyone's part of the Royal We in fiber-optics), but fat option premiums fer sure...Sold Jan220 puts today for 26 w/underlying around 210ish? perhaps. Other week sold the Jan175s for 25 and did a buy-write on the 180s for a 16% monthly return (179 underlying - 24 call premium = 155 cash out; return is 180 - 155 = 25 if called out [probable]; 25/155 = 16% return; LOL!). If you investigate the co. and find them of interest, it seems option sales (short puts, covered calls) provide a good avenue. Cash in hand can then be deployed long in lower-premium ITM call plays on JDSU (for example), thereby gaining a return on your return (The postman always rings twice. LOL!--I'm easily amused these days...). Nice thing about put sales: you don't have to "ask a lot" of your stock--just stay even, or go up slightly, or only go down slightly, as suits your fancy. What's the rush?

To: Poet who wrote (607)	1/4/2000 1:38:00 AM
From: Jeffry K. Smith	Read Replies (1) \| Respond to of 8096

Poet, can you expand a bit on why you buy May calls and "roll them up and out to the August, highest strike available" calls? Rolling out as I understand it is selling the calls you have, which presumably have appreciated, and buying others futher out - right? Furthermore, I interpret what you are doing as an strategy which says "this stock is going to go higher, and higher, and higher". Is this correct? I have never rolled out options (if I understand what that means) Thanks, Jeff Smith