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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: J.B.C. who wrote (19148)	2/14/2001 11:21:38 AM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 60323

Jim, while buying the shares and selling the calls gives you some low risk return, it also limits the return. If you want to speculate on options, particularly while the price of SNDK shares remains unusually low, wouldn't it be better simply to buy the calls? The worst case scenario is simply that you lose about $10 per share, but the loss is finite. The more likely scenario is that the stock recovers at least to its level prior to the latest earnings statement, in which case you might double or possibly triple your investment in short order. Art