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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: Poet who wrote (5023)	9/15/2000 10:44:22 PM
From: Dan Duchardt	Read Replies (1) \| Respond to of 10876

Poet, How are you positioned, Dan? I have a couple of IRAs rather heavy in cash, about 70%. I can't do long options in one, and I'm required to keep cash = strike for long calls in another (Yes, I am interested in a new home for at least one of these.) I'm accumulating stock that I might use for CCs in the following: AMD, AMES, AMKR, APGR (hurting), FDX, GBLX, HLYW, INTL, JAKK, KM, LU (hurting), SBC, SCON, SNRS. I added a bit to LU, and SCON today, and opened a small position in BMCS. I am just as likely to sell off part or all of any of these if they rise, and buy them back on a dip as long as we are not trending up, but they are all stocks I think will do well in the long term. I have some GENE covered with OCT25 and OCT15 calls written several months ago for healthy premiums. I expect to lose stock to the 15s and write about 4 to six months out on what remains, probably after the winter rally if it comes. In another account I opened two call debit spreads on ORCL JAN80 by 90 and JAN 85 by 90. My intent was to wait for a better premium on the short side, but when the market did not cooperate I completed the spreads to protect the downside. I intend to work these to a lower debit as opportunity arises. No predictions for next week, or the next several, but a big sell off ala Fall '98 in the Nas is not out of the question. I'm hoping the April episode was enough for one year. I'm keeping some exposure, but lots of dry powder hoping to load up at the bottom, wherever I may find it. I do expect there will be a bottom this fall, and a rally to follow, continuing the pattern of the last few years. I certainly don't expect to see anything like the winter of '99-'00 again, and would not be terribly surprised to see a test of the lows for the year in the major indices. My guess is they will hold up if it happens. Dan