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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Galirayo who wrote (19898)	8/8/2000 12:04:14 AM
From: Mad Bomber	Respond to of 21342

Ray, I don't usually trade that many options. In fact, most of my trades are in my IRA's. It's kind of nice to make large gains and pay NO taxes. Actually, I have BIG loss this year in taxable accounts because of WSTL fiasco in March. I usually do better with Westell when I am cynical. Soooo, in that tradition, I first bought 6400 shares and covered them all with NOV calls. Not real genius, basically, all it has to do is close over 15 in November, and I make 42% return 126% annual. Downside risk protection to 10.75. But I figured I would kick myself if they finally took off after 4 years of research, so I got 2800 more uncovered which puts break even at 12.5 approx. Not bad. WSTL will have its day, but right now, very good returns can be made selling NOV calls at a small risk IMO. I also looked at EFNT FEB calls which, at the time, would have garnered a cool 50% if they closed above 50. Stock was trading at 48-52. I think EFNT could really suffer though (already are 102-->48) when market gets wind of WSTL's market leadership. EFNT gets internal modem scraps from Korea and elswhere. MB