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Pastimes : Play It On Paper- Clappy's Newbie Option Thread -- Ignore unavailable to you. Want to Upgrade?

To: Clappy who wrote (54)	7/25/2000 11:08:16 AM
From: hlsjones	Read Replies (1) \| Respond to of 176

clapper I just opened a position on SUNW. Got in at $101 and now I'll wait for the stock to bump to sell the JAN105s that are going for about $15 right now. If the stock runs up a little more I'll sell the JAN105s for about $20 or maybe sell the JAN $110s instead. Since I did the stock and not the LEAPS my magic number is $101. All the other facets of my write-up still apply. I bought the stock here instead of the LEAPS cause (1) I think that SUNW is about ready to split and (2) I had the cash available and it's in a marginable account so the real out of pocket is $50.50 plus the margin interest if I need to. (3) I like selling naked puts and my broker wants me to keep very strong long positions to cover. My real cash in the deal is $50.50 and even at the current $15 for the JAN105s that yields 37.6% ((15.00+4.00)/50.50) If I'm called and 29.7% (15.00/50.50) if I'm not. These are 6 month returns so worst case that's right at 5%/month and I own the stock. Not the best return available but safe and annualized that's about 60%/year - beats the bank! And, IMHO, it's just as safe. We'll see how it plays out. Harry

To: Clappy who wrote (54)	7/25/2000 2:44:10 PM
From: Dalin	Read Replies (2) \| Respond to of 176

Clappy!! Kewl thread...I love it. I play a little with options now, anywhere from 5-30k worth so far. Only been doing it for 3 or 4 months now. I've read a book and followed some of the threads here on SI. Ain't cyber space kewl??? I've done alright so far, usually taking profits too soon....I'm a BIG chicken!<g> Right now I'm holding 2 JDSU sept 120 calls, and 2 JDSU Jan 120 calls. Sept's I bought at 14 3/4, and Jan's I bought at 18.50. I actually had 4 of each but sold em off....that chicken thing again....<gg> :0) D.

To: Clappy who wrote (54)	7/25/2000 6:18:04 PM
From: Clappy	Read Replies (1) \| Respond to of 176

Trade This morning I had posted that I was selling the AUG 120's Puts that I had. After 1/2 hour into the market trading, I saw the Bid for JUYTD to be 2 1/16. I'm not sure if the MM would have given it to me at that price. As far I can tell that was the real time current Bid. So I am applying a credit of $4,125 to my fictitious account. $5,050(cash) + $4,125 = $9,175 Total cash in my account. I'm still holding 2 Puts Aug 160's which finished the day at 10 7/8. Value= $2,175 I bought this one at a higher price on Friday. Had I sold it at today's close the account value would be $11,350. Right now I can not make a confident guess as to which way the market is headed tomorrow. Therefore I plan to hold these contracts and keep my cash ready for when I can get a clearer picture. I still hold a short term bearish outlook. -ClapOff