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To: Tom K. who wrote (448)6/23/2000 4:23:00 PM
From: PAL  Respond to of 1115
 
Paul, why not sell the CALLs. The premiums help to buffer the risk and if you're wrong and it penetrates your strike, buy the stock to convert to a CC.

very good point Tom!! I have not done a naked call, but I can sell July 125 call at 11 and when RMBS is reaching the strike price, I'll buy the stock to cover.

Thanks for the pointer. Will study it over the weekend.

Paul