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

To: Knighty Tin who wrote (83484)	9/6/2000 10:13:20 PM
From: Dan	Read Replies (1) \| Respond to of 132070

Thanks Mike. I've been trading like the Energizer Bunny this year. I think Earlie is right on a nice pop, I'll jump on one more time to finish the year. But, next year, I don't want to work this hard for 12%. Spread conversions looks like a winner! As you recommended, I'm in the Royce trusts for a nice 8.5% yield. Is there any way to goose up the yield on this or other bond types to 10%? Is somebody ever going to buy Novell? I bought some on the sell-off 10 11/16. Now, I don't know what to do with them. I hate writing calls on a buy out candidate. But, I could sell the 10 Jan 2002 call for 4 5/8 and buy the 10 puts for 2 9/16. Risk free 15% for 15 months. Or, is it worth to try for better returns elsewhere? If I ride it without the put, that's 40%. Good - if they are still in business - or bought out.

To: Knighty Tin who wrote (83484)	9/7/2000 1:40:51 AM
From: Richard Nehrboss	Read Replies (1) \| Respond to of 132070

Mike, RE Spread conversions. I regularly troll CBOE for these babies, especially on stocks like INTC (was trolling last week, but found nothing more then 5-6%/annualized... which looks great now) and CSCO. I find they are pretty effeciently priced (IE they reflect risk free rate, since they bear little risk). Can you point me to a few examples in the 12% range? Richard

To: Knighty Tin who wrote (83484)	9/7/2000 11:36:09 AM
From: Franco Battista	Read Replies (1) \| Respond to of 132070

Hi Michael, I've done the math on a number of stocks like WCOM, EXDS and a few more of the volatile ones. I used Jan 2003 leaps as my basis. I simply could not come up with a formula that yielded 12%. The best I could do with EXDS was come up with a 3$ profit over two and one half years (on a 42$ investment). That's about a 3% yield. Are you assuming a rising stock price in order to get a better yield (you would then close the position to realize the gain)? If this is the case, then it is not a risk-free strategy. TIA, Franco.