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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (82132)	7/4/2000 2:57:24 AM
From: S. maltophilia	Read Replies (2) \| Respond to of 132070

MB re VERT writes 1. You're right--I don't know what year this is.-g- 2. No argument there. 3. If it goes to 100, you make more, but it takes longer to realize it (we're both thinking IRA--l/t tax rates don't matter here). 4. If the premium shrinks after my first expiration, I would consider closing the long and freeing up the capital-- plenty of other stocks out there. As to the stock possibly being lower, the risk is always there. The question is how much risk over how long a period of time. Stock selection always comes first. 5. In a takeover, we'll both regret how much we left on the table-g-, but that's the price of getting all that cash up front. I've had several buy/writes taken out that way, but they were all deep value situations. A small risk in this scenario.-g- So far this year, my most consistent buy/write has been ABX. NO upside, not much downside risk. Plenty of emotional folks bidding up the calls, so the near month is good for 4-5%.(In 1996 MUfit that bill-wouldn't touch it with aten foot pole since). I also limit risk by trading a lot of small positions rather then a few big ones so mistakes don't cost too much. But they're all trading sardines; I don't want them to stay in the can long enough to get too rancid.-g-