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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (27545)	10/31/1997 10:40:00 AM
From: The Perfect Hedge	Respond to of 58727

To all, Can anyone direct me to an option quotes site?CBOE is down this morning.Thanks.GD

To: Tom Trader who wrote (27545)	10/31/1997 1:32:00 PM
From: Carlyle	Read Replies (2) \| Respond to of 58727

TT, As you are so generously sharing your wisdom of late.... <gg> I currently hold 2250 shares of WDC, and it is currently off its high. (Masterfully understated, if I do say so myself. My interest in hedging strategies has increased dramatically. <<gg>>) I recently sold Jan 50 covered calls and am now thinking about buying them back. (The calls now being on the cheap side at the moment.) I can sell some more covered calls, but I am looking at perhaps some type of call ratio spread as well. I think WDC will see a slow rise up through the spring of next year where a call ratio spread seems appropriate. There is always the possibility of a quick rise/fall in this stock and this is the one thing that makes me a little uncertain of this strategy, so I'm looking at ways to hedge. I am also beginning to look at a call backspread strategy, that may be more appropritate, due to the current downward feel to the market that some feel. Have to see if I can get the math to work to my satisfaction on these two strategies. Questions I am asking myself are, use near term or far out options, use in the $ or just out of the $ options, are option premiums too pricey to make these strategies work? While I know you don't follow the DD stocks much, what do you think of call ratio spread and call backward spread strategies? Any thoughts would be most appreciated. If any one else cares to comment please do, (Judy if you happen to be lurking??) If you don't have the time or inclination, please don't feel you have to respond in depth. I certainly understand.... Thanks all for the education, keep up the good works! Carlyle