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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Id who wrote (927)	6/6/2001 9:10:23 PM
From: hivemind	Read Replies (1) \| Respond to of 5205

If you had bought SEBL and then sold DITM calls you would have about the same position as you described using short puts. Also, with the short puts I think you could buy treasuries for interest during the life of the play. I see these two things as 98% identical thoughts?

To: Dr. Id who wrote (927)	6/7/2001 3:15:42 AM
From: FaultLine	Respond to of 5205

I sold Sebl July 35 puts a few days ago. Got 2.50 for them, today they're worth about 80 cents or so. That's interesting Dr. Id because I've been considering doing exactly the same thing. I trimmed a couple of positions yesterday and went completely off margin (for other reasons). So if I decide to give this a try I'll have plenty of margin breathing room. (Your puts were deeply out of the money -- I'm surprised you got so much for them. Why do you suppose that was?) It appears you correctly caught the train on SEBL SGQSZ quoting at $0.55 right now while I'm still standing at the station. I need think about this some more. Incidentally, I 've decided to reduce my margined long positions because I'm not feeling all that optimistic about the next quarter or so. I've seen (twice!) how my margin holdings have really eaten up my portfolio when Mr. Market heads for the mat. I think I'll just pull in my horns for awhile. I picked up a nice premium and would be very happy to own SEBL at 32.50 if it were to be put to me I'd be happy too. Nice work. --fl