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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: KB who wrote (46)	9/9/2004 10:05:49 PM
From: Gersh Avery	Respond to of 652

I don't mind at all ..

To: KB who wrote (46)	9/10/2004 3:41:32 PM
From: kaka	Read Replies (1) \| Respond to of 652

KB, Most of my option positions have centered around DELL these past few months. Its a stock I own quite a bit of, and a stock that has traded religiously around 35! I'm covered up until around 120 short call contracts....after that they are naked. All the puts are naked. I currently have option positions with DELL for Spetember, October, November, January '05 and February '05 with the idea that Dell will trade within a range and even if it dips outside that range, I'll still have enough expiring positions to offset any losses. I start with well out of the money short strangles for farther out months since these have enough premium to warrant opening up a position. As the months draw near, I tighten the strangles and begin opening up straddles. I rarely profit take because I hate spending money closing positions that I'm pretty certain will expire anyway. For example....I have 40 short contracts Jan 45 dell calls , and 40 short 50's. These were sold at different times during the past 1-2 years when DELL might have spiked up. Average premium was between 0.90, and 1.25. Also have short puts for Jan 25, 27.5 and 30 strikes. I can cover them all now for between 0.10 and 0.30, but am willing to bet DELL will close between the strikes. As Jan approaches, I'll tighten and/or add other strangles and finally a straddle around where dell is trading come December. My current positions for next weeks expiration...all short 35 contracts DLQ-IG 35 contracts DLQ-UG 20 contracts DLQ-UZ 25 contracts DLQ-IT Also short 10 contracts MSFT @27.5 , and covered today 15 CSCO short contracts @ 20 strike for a nice profit. I usually have more DELL contracts expiring at a greater range, but premiums were scarce for the month. Had many more for August since on DELL's option cycle, the contracts have been out for some time. Starting to accumulate Octobers...I'll post positions if you desire. Cheers, kaka