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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (11756)	12/17/1997 8:06:00 PM
From: Bearded One	Respond to of 18056

May I recommend selling calls? For me, I'm much more secure in the belief that a company like Microsoft (very strong shareholder support) won't break a price level than the belief that it will actually go down. Also, as the McNabb brothers like to say, a stock goes down a lot faster than it goes up, so it's easy to get out of a position if you're in trouble. If you're worried, do a spread. I did a 140-150 spread--- I sold 140 calls at 3.5 and bought 150s at 1, limiting my potential losses to 7.5. I probably didn't need the 150 calls, but I was nervous.