Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (6811)	1/6/1998 11:19:00 PM
From: sand wedge	Respond to of 95453

<<.and just how many is in a shit load>>> where exactly did you get that particular amount ?

To: Big Dog who wrote (6811)	1/6/1998 11:23:00 PM
From: waverider	Respond to of 95453

All...in terms of a stronger dollar. What thoughts do folks have on the impact this would have on the price of oil? Diamond H

To: Big Dog who wrote (6811)	1/7/1998 12:21:00 AM
From: HF	Read Replies (1) \| Respond to of 95453

Hi Mike, I enjoy your detailed researched comments. What do you think of this idea to increase your holding for the long term? Say I want to own 1000 shares of FGII. Price today is 22.375. Cost 1000 x 22.375 = 22,375. Instead of the above what about a covered combination of buying the stock, selling puts, and selling calls? Example: 1000 shares = 22,375. sell 10 Aug 35 Calls at 2.75 = 275 x 10 = 2,750 sell 10 Aug 22.5 Puts at 5.75 = 575 x 10 = 5,750 Your premium after commissions is $8,420 Scene 1: Stock above call price at expiration. Net Profit = $21,045 Percentage Return = 150.48% Scene 2: Put assigned (you buy another 1000 shares at 22.5) Net cost on total stock position = $36,515 Average price/share = 18.25 Start writing covered calls to reduce basis. Scene 3. Stock between call strike and put strike at expiration. Unrealized profit = $8,390.00 Percentage return = 59.99% These calculations come from the CBOE Covered Combination Worksheet. Any comments would be appreciated, since I would like to buy more FGII and GLM and this seems better to me than just buying the stock, because I have some downside protection, some upside room for gain and some time until Aug 98 for the insanity to stop. Thanks.