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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (1396)	4/26/2000 8:48:00 AM
From: GROUND ZERO™	Respond to of 2317

I think the before and after markets are very thin... you may have been the only one placing an order and the pit trader was playing with you to see if he could make you chase the market, to see how desperate you might have been considering that you were placing an order at an off time..... just my guess...BWDIK GZ

To: jjs_ynot who wrote (1396)	4/27/2000 11:30:00 PM
From: KFE	Read Replies (3) \| Respond to of 2317

Dave, Just returned from a week of golf in Palm Springs and it doesn't look like I missed much in the market. Before I left I wrote a straddle on CEGE which I had purchased earlier in the week. I won't use my numbers because I don't like to post trades that are not real time. Using the closing bid/asked prices today I will analyze different possible similar trades. CEGE: 16 3/8 Oct 17.5 call: 5-5 3/8 Oct 17.5 put: 5 1/2-6 Buy stock write 17.5 straddle Return: 70% for less than 6 months if stock finishes at or above 17.5 64% if stock remains the same. Breakeven: 11 3/4 write naked put (long stock and short straddle is equivalent of two naked puts) Return: 63% for less than 6 months if stock finishes at or above 17.5 (assuming 50% collateral deposited-if using 10% minimum the returns are obscene) 50% if stock remains the same. Breakeven: 10 7/8 buy stock write covered call Return: 37% if stock finishes at 17.5 or higher. 30% if stock remains the same Breakeven: 11 3/8 Note: The stock has $7.50 a share in cash and has an equity stake in ABGX worth another $11 a share so the downside should be limited. Traded at over $60 in March. A Biotech with value... maybe that is why it is down at these levels. Regards, Ken