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Strategies & Market Trends : WR's Momentum Trades -- Ignore unavailable to you. Want to Upgrade?

To: Susie924 who wrote (8608)	10/26/2000 7:57:42 PM
From: Bernard Ng	Respond to of 11130

Susie... if you know it's going to drop tomorrow.. isn't it better to buy it back next week? Even though you're long and strong in AIG? I know the hard part is... after I sell my long and strong stocks, I prolly will go play MOMO stocks... <ggg> Bernard

To: Susie924 who wrote (8608)	10/26/2000 9:16:54 PM
From: Wayne Rumball	Read Replies (2) \| Respond to of 11130

Think options Susie. If you want to hold this stock for years, write options against your position. Jan 93.75 calls, someone will give you 6 3/8 for writing the call. If the stock goes up, that premium will erode, you buy it back and write a $100 call. If the stock goes down to 83, you buy it back for $2 and write 83.75's for $6 3/8 Look here; amex.com All the Jan calls that are in the money people are willing to pay the equivalent of $96 for the stock. Look at the out of the money calls. 93.375's they'll pay 100, 105's they are willing to pay 107 7/16. My strategy has been to write near the money calls (like the 93.375's) and switch around when they become in the money, or use the high premium to lower my risk level. It also gives you cash to buy something else (Say like more of the same stock) Some people just like to write way out of the money calls so that they never have to worry about being called and just collect the extra cash