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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: minorejoy2000 who wrote (29630)	1/21/2001 4:58:43 PM
From: Mannie	Read Replies (1) \| Respond to of 65232

mino.... ITM...in the money, strike price is below the current stock price OTM...out of the money, strike price is above the current stock price. ATM...at the money, strike and current price are equal. May I suggest a great book that is simple and easy to understand, and a great way to get started? Thomsett's 'Getting Started in Options'. It is a great way to get up to speed.

To: minorejoy2000 who wrote (29630)	1/21/2001 6:55:51 PM
From: Jill	Read Replies (3) \| Respond to of 65232

By the way, when buy-writing it's best to do only slightly OTM, or else ATM, or sometimes even ITM! If you're just looking for the heftiest premium, you figure out which of those scenarios works best. Way OTM isn't so great.

To: minorejoy2000 who wrote (29630)	1/22/2001 9:07:01 AM
From: im a survivor	Respond to of 65232

NO ....OTM means I would cover with next month CC's that are higher then current share price. Obviously, you would get a higher premium upfront by covering with strikes at or below current share price, but you have to decide your strategy and what you think stock and/or market will do. In EXTR's case...she's a mover. Big swings up and down. Getting 10% upfront for an OTM calls that is 25%+ away, is a great premium. Normally, you'll be lucky to get 10% for calls at the money......In extr's case, I felt like 10% was nice and it gives me some movement to the upside as well. If she doesnt get called, thats fine with me.....I will trade the CC's as well, as the volatility allows. Good luck Keith