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Technology Stocks : Wind River Systems - Technical Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Peter Church who wrote (366)10/11/2000 12:02:11 PM
From: Alfred W. Post  Read Replies (1) | Respond to of 431
 
I find the technic of selling puts and buying with the proceeds calls very profitable. As long as you play only with good firms (like WIND) and you have enough liquidity not much bad can happen. If the stock keeps on moving up you make out with the call which did not cost you a thing. And if the stock price fall below the strike you most likly will get the stock at a bargain price (and at a time you most likly would not have bouht it, because the disapointing news drove the stock down) and in the long run, you will make out on this also. It is only dangerous if you do not have the liquidity in case you have to take the stock over. FRED