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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Tony B who wrote (46242)	1/29/1998 6:12:00 PM
From: Ken Pomaranski	Read Replies (1) \| Respond to of 58324

Beautiful strategy! It works great. I've been using that for about 2 years now on other stocks. 50%+ a year is easy to obtain in this manner. The reason why people don't do this is that it takes alot of discipline and work. Also, it is not a 'win the lottery' strategy and it therefore scares most people away. A lot of 'investors' want to become millionaires overnight so they don't employ these 'slow' income generating strategies. kp

To: Tony B who wrote (46242)	1/29/1998 6:40:00 PM
From: mc	Read Replies (1) \| Respond to of 58324

Tony, I too have been playing the CC game on my IOM. I listed below my trades so that any of those interested out there can see how it works. It's a good way to offset some losses if you're getting clobbered on the stock price. I've been doing the same thing with VVUS, but, it has dropped so far I'm still in the red on that one. 2/3/97 Bought @ 18.25 2/3/97 Sold Mar-20 @ 7/8 (Net cost per share now: 17.375) 3/25/97 Sold Aug-20 @ 1 (Net cost per share now: 16.375) 4/18/97 Doubled my position in IOM @ 17 5/8 4/18/97 Sold Aug-20 @ 1 11/16 on new position (Net: 16.15625) 6/27/97 Bought back all Aug-20 @ 1 7/8 (Net: 18.03125) 7/9/97 Sold Nov-22 1/2 @ 2 1/4 (Net: 15.78125) 10/9/97 Bought back all Nov-22 1/2 @ 3 3/8 (Net: 19.15625) 10/9/97 Sold Feb-22 1/2 @ 5 (Net 14.15625) Split adjusted current net cost per share 7.078125 As you can see often times its a running battle, putting more money back on the table, and at times taking a lot off the table by selling deep in the money calls. On 10/9/97 I was anticipating a poor quarterly earnings and a subsequent reduction in stock price. I missed it by a quarter but since i went out so far I got it right this quarter (also by moving to February I didn't have to pay taxes on the option income for that write during the prior year). Unfortunately it fell more than I liked. I was hoping to be called out at 11.25 (22 1/2 call split adjusted to 11 1/4 for 200 shares per contract). I didn't include fees in any of those calculations because they are different for everyone, however, they are substantial and need to be considered if anyone is going to try using options like this. Good luck, Gary P.S. Anyone who hasn't written calls before, don't study the above as a what to do. It is an example of haphazard, multiple strategy, trying to learn while doing, kind of freakish turn of trades. If done correctly using proper TA and FA it can work much more efficiently. However, even after saying that, I still managed to reduce my net cost per share and keep the position profitable.