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To: tfrugal who wrote (6565)2/12/2001 12:26:18 AM
From: kumar  Respond to of 10934
 
A while ago, a friend of mine said to me :
"... any trader that understands the fundamentals of a company, knows way too much to be a successful trader with that company's stock...". I tend to agree with that opinion.

cheers, kumar



To: tfrugal who wrote (6565)2/12/2001 12:26:58 AM
From: Uncle Frank  Respond to of 10934
 
I couldn't agree with you more, tf. Most of the disagreements are based on differences in investment windows.

>> They feel that big money can be made by calling those trends: in a range bound market how else can you do it?

By recognizing the upper boundary, and selling covered calls when it is approached. In this way you can realize a revenue stream while retaining long term positions in great companies.

The current bid price for ntap March expiry 40 strike price calls is $5, which is 13% of the value of the underlying common. If I felt ntap was at a peak (which I don't!), I would be selling those calls against my holdings.

uf