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

To: KFE who wrote (1410)	4/29/2000 6:57:00 PM
From: Tim O.	Respond to of 2317

Ken, Yes, I'm aware of the AMGN/TKTX case. I sold my AMGN on Tuesday because of the these risks (Epogen is only the first that will be challenged). I'm very comfortable with my CEGE position. I agree with the potential upside and controlled downside, that's why I also went long the stock (covered) together with the short put. I might take another equity position if it dips again. Thanks again for sharing. Please share some other plays once in a while. Tim

To: KFE who wrote (1410)	4/29/2000 7:14:00 PM
From: dealmakr	Respond to of 2317

Ken, Maybe a pop when LEHM stops offering(CEGE), he's been there all week with a lot for sale, sold some more May 17 1/2 puts @ 2 on Fri, I don't mind owning the stock. Some other stocks that I have been going the CC route and shorting puts on are IDX,BRKT and NBCI some good premium out there. Too much volatility for me lately to do any spreads, but makes for some good trades buying or selling premium on over/undervalued options. Good Trading Dave

To: KFE who wrote (1410)	5/3/2000 3:03:00 AM
From: Tim O.	Read Replies (3) \| Respond to of 2317

Ken, I saw you on another thread discussing spreads. I used to do mostly vertical bull spreads, but because of the volatility, I often saw profits evaporate. My hesistancy in taking profits was because the net gain is only maximized upon expiration, so I usually would ride it to expiration. Also, the net gain comes from the difference in deltas on the long/short sides, so the gain grows slowly. Hope I'm clear on what I'm saying. Do you experience the same problem? I'd appreciate your strategy on profit taking on spreads. Tim BTW, I think it's great when you bring a real-life play such as CEGE. It allows for actual analysis and if it's a good play, we can all benefit from it. Case in point, I initated a bull calendar spread on SLR today. Long WRLAE (Jan02 25C) and short SLRGI (Jul 45C) for a net debit of 17 1/8. Common closed at 37 7/8. This play is intended as an income generator. I wrote the first one further out to reduce my initial cost basis.