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

To: dealmakr who wrote (1450)	5/26/2000 8:10:00 AM
From: Beta Nasdaq	Read Replies (1) \| Respond to of 2317

What's the address if the ISE?

To: dealmakr who wrote (1450)	5/27/2000 9:44:00 PM
From: KFE	Respond to of 2317

David, Last months CEGE play worked out ok for me with the 20 calls and 17 1/2 puts going out worthless 19 7/8 expiration close worked out good for me too. I don't have any CEGE option strategies out for June but I do have some July and Oct plays out. The announcements last weekend probably would have given it a nice pop if the market and the sector weren't so weak. At these levels there are still many option strategies available to generate a good return with very favorable risk/reward ratio. Regards, Ken

To: dealmakr who wrote (1450)	5/27/2000 10:02:00 PM
From: KFE	Read Replies (1) \| Respond to of 2317

David, It appears that some others may be reading this thread also. This is from this week's Barrons. Option pros agree the liquidity myth is keeping option prices in the stratosphere. "It takes very little these days to bounce around the stock price anymore, and that's exacerbating volatility in options," says hedge-fund manager Ed Borgato. There are ways to play that. Borgato is taking advantage of high option premiums and selling what are known as "covered straddles," packaged around stocks he wants to own. "If you want to be a shareholder in Cisco, for example, but don't want to overpay, then engineer ownership of the stock at the price" you want -- in his case, at around 40 times earnings. It's called a "covered" straddle because the investor owns the stock, at the same time writing put and call options. Regards, Ken