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To: Art Bechhoefer who wrote (25893)	5/21/2004 10:54:34 AM
From: limtex	Respond to of 60323

AB- is that volume right for today? I can't remember seeing a volume that low before. Best, L

To: Art Bechhoefer who wrote (25893)	5/21/2004 3:10:58 PM
From: Steve 667	Read Replies (3) \| Respond to of 60323

Art, I understand your comments, however the original issue was strategies for locking in profits. Selling covered calls does not lock in profits! So it cannot possibly be the strategy of choice for locking in profits. What it does do is limit any appreciation in the value of the stock until the expiration of the option. What is does not do is limit your potential loss in the stock whether you have a prior profit or not! A strategy which limits your gain, but does not limit your loss does not seem to be either a conservative or prudent strategy. Essentially you are just placing a wager. You are betting that the stock will not really change much in price for a few months. If you are right, you make a small premium. If you are wrong, there are two outcomes: 1. You make the same small premium, but you loose the gain in price of the stock if it goes up. 2. You make the same small premium, but loose what can be a lot of money compared to the small premium if the stock goes down. Just look what you would have lost if you owned the stock at 32 and wrote a covered call with a strike price of 32.50. I have to say Art, that this strategy seems to me not only to be non-conservative, but downright foolish. Good investing strategies limit you losses, not your profits. Your strategy does just the opposite. Regards, Steve

To: Art Bechhoefer who wrote (25893)	5/21/2004 3:11:15 PM
From: limtex	Read Replies (1) \| Respond to of 60323

AB - if they could make $2 eps in 04 then we would have a P/E of just over 10. Maybe the market thinks that a low single digit P/E is appropriate for a company that is growing its revenues and earnings at the rate that SNDK is? Single digit P/E could also mean that they could pay a significant dividend. If interest ratea are going to rocket up to 2.5% then maybe we are going to see many single digit P/E high growth companies. With interest rates as high as 2.5% maybe people will somply lose interest in equities and prefer a yield of 5%. After all after ten years of 5% cumulative you get to ver 70% and 70% over ten years less inflation may be considered much better than high growth equities. Best, L

To: Art Bechhoefer who wrote (25893)	5/22/2004 8:55:12 PM
From: Jill	Read Replies (2) \| Respond to of 60323

If you are a longterm investor and sell covered calls, it is often not a good strategy, as the stock goes up and down...you could repeatedly get caught on the wrong end--you may have to sell your stock, causing tax liabilities at a time you don't want them, etc etc Buying puts is safer if you feel the stock has gone up a lot and is going to retrace, but you want to keep it. Why? YOu risk only what you paid, and you may actually make a profit. It's a bit of a gamble but you have more freedom. Selling puts or selling calls, you can't necessarily make your own choices later on--the market will make them for you. That's how I see it anyway. I used to sometimes trade covered calls but now I don't really invest anyway, so I don't hold stocks longterm, and I'm too much of a scaredy cat to sell naked calls.