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

To: Poet who wrote (7067)	11/12/2000 2:00:07 PM
From: robwin	Read Replies (1) \| Respond to of 10876

(OT) Hi Poet, Hope no one minds if I interject a small option strategy question for Texas Instruments (TXN)... The stock like all semi-conductors has been grossly oversold lately...closing price on Friday was $38.75...I am in at about $43.00 or so and have been writing calls every month to reduce my base cost...still like the stock for the near term and long term (6-12 months)... I think the stock should bounce back to the $50.00 range by January, 2001...might be off a bit by this American election stuff (we never have this much excitement in Canada)... I would normally write the front month options this week (i.e. the Dec 40's for about 3.50) and pocket my premiums, but I am concernced that I may get caught in the long-awaited, long anticipated, nirvana-like, year-end rally that I keep reading about...obviously the stock could then take off on me a bit and I would to roll up and out to avoid being called... i do not mind doing that but would it make any sense for me to use those premiums from selling the calls to buy some January TXN 40 calls that I could then convert to common if the stock does in fact take off? Or am I simply playing a zero sum game? Any thoughts would be appreciated...

To: Poet who wrote (7067)	11/12/2000 2:05:12 PM
From: X Y Zebra	Respond to of 10876

Well... we shall see... Perhaps, we will grow to be accustomed to this "uncertainty" and dare I say it ? even the markets will learn that... who knows. Attempting to see through the circus that is growing this to be, the relevant fact is that the government we will have (regardless of which head clown we end up with), is a split government. This translates in compromise. In other words, little in the way of new laws that could be on either extreme, better yet, not many "new" laws at all. This has got to be good for the markets. If the media were to be less dramatic about the entire thing... maybe the markets would be more calm... on the other hand... I think the market does perceive serious risk exposure... again, it all hinges on the "uncertainty factor" ______ A small window of the American election, through the eyes of different world personalities, via interviews here: foreignpolicy2000.org