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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (990)	7/22/2007 11:26:29 AM
From: Jerome	Read Replies (1) \| Respond to of 5891

>>> I specialize in bank stocks<<< Which bank stocks do you currently like? It has been my observation that bank stocks offer safety but little option premium. Recently I have bought WFC (Wells Fargo) under 35 and sold it over 35. Its not a great call write, but one would not have to worry about the stock crashing to 20. Two strategies with WFC. 1) Buy it under 35 and sell above 35 2)Buy it under 35 and write a cc when its above 35.

To: dealmakr who wrote (990)	7/22/2007 9:22:26 PM
From: pcyhuang	Respond to of 5891

Re: AHM ooption strategy Dealmaker: thanks for pointing out the potential outcome at the long tail end of the probability curve. In actual position, I did take this scenario into consideration. The suggested put spread is further hedged with several bear call option spreads. I did not bring this part into earlier discussion to avoid overly complicated the discussions. Thanks for your comments. This is another very good illustration the usefulness of a bulletin board -- a platform to test one's ideas. pcyhuang