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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Burton Waxman who wrote (9192)	1/29/1998 8:48:00 AM
From: g.w. barnard	Read Replies (2) \| Respond to of 13925

burton, hope you don't mind my comments on the subject. i also employ your stradegy. this is a good stradegy if it go your way. obviously you believe the stock price will be over 17.5 in july. i agree but should the stock fall to 10 to 12 range they could be exercised early and of course you would have to cover at 17.5, lossing money in this case. my point is you have obviously thought about the negitive consequenses of this stradegy and are confortable with it. the way i played cube is buying 500 shares at 20, selling feb 5 calls at 2 1/8 as well as selling the feb 17.5 puts at 1 for a 10% profit on the income side. if stock falls below 17.5 by expiration i will purchase 500 more shares and 17.5 less the $500 income, then rewrite the calls and put positions again. accumulating on weakness and selling into strength. of course the drawback is if a big mover occurs either way. then i can be left holding stock at a substantial loss. i do this because i see the downside is limited into the 10 to 12 area which i would like to pick up some more. ps dug i like your analysis and no politics. gw

To: Burton Waxman who wrote (9192)	1/29/1998 3:11:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 13925

Burton, Great idea! Sometimes I'll trail the put a bit to leave a little wiggle room in the (heck I get it mixed up strangle or straddle). Especially on a stock like CREAF which has lots of volatility (raises premiums on both puts and calls), and is generally a good company, with excellent management, and a reasonable strategic plan.... Now Howard- are you out there? Suddenly those Feb 17.5 call options are looking better for you..... Sincerely, P.S. Look also @ ASND for large option premiums and a stock in a generally growing industry segment....