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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Mark who wrote (12723)	10/24/1997 1:45:00 PM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

I bought TXN deep in the moneys and selling some out of the moneys- like TXN 90's for 25 and selling 120's for say 6 or 7- you cover your open naked call if TXN falls below 100 from now to Nov and let your long calls run- if TXN runs north you get 37 instead of 25 but by selling calls you restrict your upside but this is a kind of hedge- a provide a little comfort against a fall- I did the same thing for MSFT before earnings. I will not recommend more than 10 contracts. I will go Long SOX if you see bonds closing around 116,14 and SOX above 315. I will buy Nov 940's selling Dec 890's 1/2 to protect next 20 days of my exposure. I think in these conditions this will be my closing trade today- I will come out of the trade once sp takes out 980 but I will have for next 20 days ample insurance without cost since S&P move up will more than amply be helped by sold options of Dec- the ratio is 1/2. However all these need a very active presence which I have I will not advice these positions if you are not nimble.