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To: Glenn D. Rudolph who wrote (119666)	3/8/2001 11:53:02 AM
From: manalagi	Read Replies (2) \| Respond to of 164684

Glenn: It is nothing more than selling put and use the proceed to buy call. This worked very well in 1999 but a disaster in 2000. If we think the bottom is near, we might consider to take this approach again. For example: sell naked put Oracle Jan03/17 1/2 - symbol vocmw - at 5 1/4, use the proceed to buy call Oracle Jan03/17 1/2 - symbol vocaw -. The idea is to use OPM. Why LEAPS? To have enough time to see a reversal of the current economic downturn, and to make sure that while the economy picks up, Oracle share will appreciate accordingly. Then you have a situation where the put is OTM and expire worthless while the call is ITM. So you get the call for nothing. As you can see the maximum risk has been increased to 17 1/2 versus 12 1/4 by simply selling naked puts. This is assuming that Oracle will go under by Jan03, which seems unlikely.