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

To: Lee Lichterman III who wrote (9434)	2/6/2001 9:11:27 AM
From: Poet	Read Replies (1) \| Respond to of 10876

Hi Lee, I always appreciate your market insight. Thanks so much for taking the time to post it here. I'd forgotten that NTAP reports on Thursday, to tell you the truth. This is a tricky situation, IMO, as it's been so weak lately that I'd think that anything but a horrific earnings report would at least stabilize the stock, if not provide a bounce. But I've looked at the chart and I can't see any good support until it's in the twenties, which would worry me if the next leg in the Naz is down. I think you're wise to sell the 40's instead of the 45's on it. The nice thing about buy-writes is that if the stock continues to slide, you can buy back the calls as the premium drains down to the $1 area and sell at a lower strike. I did this last week on SEBL: I bought at 69 and wrote the 70 calls. The stock slid to 63 and I bought back the calls yesterday ( locking in a $4 profit per contract) and sold the 65 calls for $5. I'm covered down to $60, will be called out if SEBL's over $65 at expiry. Not exciting, but, in this market, it's not bad. Good luck today, Hon.