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

To: Uncle Frank who wrote (4614)	11/22/2006 2:52:07 PM
From: Carl Worth	Read Replies (2) \| Respond to of 5205

they're still termed "naked" because you have no position to mitigate the risk (theoretical only of course in most cases) that the stock could go to zero they would only be "covered" if you were short the stock or bought a different put to reduce the risk...your cash doesn't mitigate the risk, it only allows you to pay the losses, if they were to occur

To: Uncle Frank who wrote (4614)	11/29/2006 11:30:43 PM
From: Bridge Player	Read Replies (1) \| Respond to of 5205

This item on Sandisk is not good news, Frank. And the stock has been quite weak, breaking thru the lows today of a couple of weeks ago. << Eric Savitz (Barron's) submits: Time to take profits in SanDisk (SNDK)? Merrill Lynch’s Sidney Ho asserts in a research note this morning that the memory-chip maker’s shares could extend recent weakness in the near-term, on worries about an over-supply of NAND flash memories. He says checks suggest that “flash memory demand for the holiday season so far has been seasonally normal, but no more.” “We believe that there’s an opportunity to make money shorting SanDisk on a trading basis,” he writes. “SanDisk’s stock has already lagged both the Philadelphia Semiconductor Index [SOX] and the broader market over the past few months, but we think industry oversupply will continue to put pressure on the stock in the near term.” He expects to see “material oversupply in the first half of 2007.” Long-term, Ho remains Neutral on the stock. “Certain suppliers, most notably Samsung, have begun to ease their capital spending on the NAND market, which should help alleviate the oversupply situation by the second half of 2007,” he writes.>> Here is the link: Message 23053537 I'm considering closing my buy/write the Dec 45 calls trade. What's your feeling about your short puts? I know you have SNDK as a core holding. Still comfortable buying more?