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

To: OX who wrote (1547)	7/22/2000 10:52:23 PM
From: jjs_ynot	Read Replies (1) \| Respond to of 2317

OX, Are you writing anything these days? The reduced volatility makes the risk/reward less favorable it seems. regards, Dave

To: OX who wrote (1547)	7/22/2000 11:05:22 PM
From: Bridge Player	Read Replies (1) \| Respond to of 2317

Here is an interesting combo that I posted today on another board. If you are confident in the long term success of Electronics for Imaging (EFII) and a believer in their growth and their management (I am), here is an interesting combo play that has some appeal: Buy Jan 15 2002 leap call for 14 1/2 (closing ask) Sell Jan 50 2002 leap call for 3 1/8 (closing bid) Sell Jan 25 2002 leap put for 6 3/4 (closing bid) Net cash outgo: 4 5/8. Stock closed 7/21/99 at 24 13/16. It has traded over 60 just within the last few months. 2nd quarter reported $.40 with $1.60 estimated for 2000 and 2.00 estimated for 2001. The stock has sold in the past for 30-40 times earnings. The breakeven price at expiration in 18 months is slightly over 22. At all prices over 25 at expiration you have better than a double on your net cost, with maximum leverage at 50 or above better than 7:1. Scanning the leaps tables for 2002 and 2003 would of course reveal literally dozens of similar plays that can be tailored to suit individual risk/reward preferences. BP.