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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: bundashus who wrote (37550)	2/26/2000 1:40:00 AM
From: Victor Lazlo	Respond to of 93625

bund, others may be able to tell you how to buy a covered option or two that would hedge your stock. However, I am not very knowledgeable of options, so I invite others to help you on this. Not sure of any other way to protect your gain, apart from selling a part of your position. regards, Victor

To: bundashus who wrote (37550)	2/26/2000 7:14:00 AM
From: capt rocky 1	Read Replies (2) \| Respond to of 93625

bundashus, you can SELL a covered call. they go to 250 with expirations in mar, april, and aug. ,so far. 200, 210 ,220 ,230, 240, and 250.(strike prices) they expire the 3rd. fri of the month. the danger is all on the upside. if rmbs goes to 300(or beyond the strike price), you must give the stock up at the strike price. if it closes under the strike price you get to keep the premium(the price you were paid for the call option.)(in fact you get to keep the premium no matter what).selling the call limits your upside potential but gives you a cushion on the down side.ex. 240 call closed at 12.5 on fri. sell 2 calls and get $2500 to keep,but if the stock goes beyond 240 by mar.17 you will gat "called" at $240 . not i gotta go fishing. good luck. rocky ps. you can buy the call back at any time before the expiration date at the current market price for the call.