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

To: robwin who wrote (7068)	11/12/2000 8:15:09 PM
From: Poet	Read Replies (1) \| Respond to of 10876

What! You want to talk options at the Options Box? Sacriledge. <gg> Sorry, robwin, I guess I'm just so stressed out about this, and studiously avoiding political confrontations with my online friends, that I've gotten a wee bit OT. About TXN: First, I should be honest with you from the beginning that I'm bearish on the Dow for the next month or so and would be surprised to see TXN at $50 by January expiry. The good part about buying the stock and writing monthly covered calls is that you're partially protected on the downside and reducing your cost basis regularly. You mentioned writing the Dec 40 calls, which may well be a good strike to write. I see TXN moved down more than three points on Friday on lower volume than the previous day, which is bearish. Although its 52 week low is $35, we may see it kiss or sink below that if there is more weakness in the Dow. Using the premium you collect to purchase calls would be a strategy to use if you're VERY bullish. Not a zero sum game at all, IMO. When I'm very bullish on a stock, I'll sell puts and use the premium to buy calls. It's the same idea.