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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: Rosemary who wrote (2671)	2/7/1998 9:42:00 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 6317

Hi Rosemary, Your question on the use of covered calls as a profit enhancer is a good one. Collecting rent and all. I do this very thing when the cash I have reserved for the stock is fully funded. Then I look into the future for calls that are fat enough for me to sell profitably at the price breaks that I'd sell shares anyway. It's worked very well in the past. I've used it on DIGI, VLSI, CHIR (pre-split) and some others. The stock needs an active option market for it to work on just one or two contracts at a time. Remember, I only sell small parts of my overall inventory. I've found that the premiums are the best when the momentum is still strong on the stock. Flat or trading markets usually don't offer enough premium for it to be worthwhile on just one or two contracts. I'm new enough to JBIL to not know much about its options activity. Thanks for bringing it up. Best regards, Tom