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

To: Raven who wrote (4244)	3/6/2000 3:32:00 PM
From: Poet	Respond to of 8096

Raven, Welcome to the thread and thanks for your very kind words. I love to teach, particularly the options stuff. I'm certainly hoping we can schedule another chat. I'll ask Vendit about my "advertising" it here as well next time. About IBM, am I correct in assuming you want to hedge the 200 shares you own? That's what you're doing if you're writing covered calls. If you're bullish on a stock, you'll want to purchase calls, not sell them. I just looked at the IBM chart and, based on the gap up, the long white candle from Friday, and the stochastics crossing at 20, I'd say this is a lovely time to buy some IBM calls. There are Aprils and Julys. Looking at the option chain: edreyfus.com I see the July 90's (in the money) calls are $21 3/4 by $22 3/4 (IBMGR). There's a large open interest (612) meaning that this month and strike price is owned by a lot of people. I'm unsure about selling puts, as I'm not entirely sure of IBM's trading patterns and tend to feel more comfortable selling puts on stocks I feel will move briskly. But buying calls here may be a very nice play.