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

To: Thomas Tam who wrote (3701)	4/25/2002 10:27:42 AM
From: Dominick	Respond to of 5205

If you believe it found support you could for a short term play. Or to limit your risk, you could just buy an ITM or ATM call to play a quick bounce, but be ready to sell if it starts declining. Dominick

To: Thomas Tam who wrote (3701)	4/25/2002 5:23:16 PM
From: Allen Furlan	Respond to of 5205

Thomas, fwiw, from a pure return on investment point of view the sale of puts could make sense here. I put order in this morning when bid was .70 on May 17.5 puts. Received .90 and have no idea why price was above my willing to sell price. My margin requirement is about $2100 so the $900 proceeds will be a handsome return if stock firms up. Of course leverage has much greater risk but I am willing to own tyco at 16.6. I think you might still get .65 or better if stock takes another dip.