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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (41973)	2/5/2001 3:15:46 PM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 42787

By L3_Aka_L3 on Monday, February 05, 2001 - 02:36 pm: Edit It was one heck of a battle with them pulling the bids away from me all morning etc but I finally got my buy write on. Bought NTAP @ 42 and sold NULBH Feb 40 strike calls against it at 5 3/4. I had to move down a strike since it was so weak and I wanted more defence than profit. Had it been stronger, I could have sold the strike 45s for around 3 1/2 and also received a gain had I been called out of 3 bucks for selling the stock at 45 but as I said, I want defence in case it sells off more. It is down almost 10% today and broke critical support but the premiums on this one were just too good to pass up. This way, if it tanks over the next 3 weeks, I can enjoy the erosion of time premium as the intrinsic value also dies and possibly repeat the drill next month or roll down. If it rallies, then I can always buy it back once it gets deep in the money and premium morphs into intrinsic and then sell a higher strike for the bigger bang. I am just following rule number one of preserving capital. Good Luck, Lee By L3_Aka_L3 on Monday, February 05, 2001 - 11:39 am: Edit I got shaken out of my last puts a while ago on that nice head fake up. Frustrating now that the NDX is tanking again. I was trying to get 5.5 all morning but they wouldn't pay more than 5.4. When things started spiking up, I took 5.2. So the over all trade was a buy at 4.5 and sells at 4.4 and 5.2 so no real profits to speak of. I am eyeballing a buy write right now but it is a bit risky although the percentage is nice. Stock is 45 1/2 and the calls at the money are at 5 so over 10% for a 3 week write.