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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?


To: Peter Church who wrote (25366)2/10/2000 9:20:00 AM
From: Paul Merriwether  Respond to of 27307
 
Peter
I concede that the profit potential is limited. However, the time premium decays rapidly in the case of short term deep out of money calls. Especially true for high beta stocks like YHOO. Time is on your side(yes it is!).
Regarding margin requirements, they are somewhat less than the requirements for say a naked short on the stock. Buying puts, time goes against you.
Having said that, selling calls ain't for everybody. Currently I do not have a position in YHOO still. Am currently getting kicked by some naked puts on GMST(good report last night, stock down premarket :( ).
regards
-PWM