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To: Lucretius who wrote (12432)	2/22/1998 4:41:00 PM
From: The Perfect Hedge	Read Replies (2) \| Respond to of 95453

I just hope you're right on NKE.I'm loadin' da boat.GD

To: Lucretius who wrote (12432)	2/22/1998 4:57:00 PM
From: Big Dog	Read Replies (6) \| Respond to of 95453

Ok guys, here is what the Dogged one is going to do Monday...just in case you were interested...and even if you aren't. I got called out of my shares of FGII on Friday at 30. So now I am a little nekkid on FGII. And I don't like that. On Monday I am hoping for a nice little dip. Should that occur I will sell 93 March 30 puts for an approximate premium of 1 1/2. This will result in cash in of 13,950. I will then buy 93 March 35 calls at approx. 1 1/2 (exact price depends on how stock price of course) for an outlay roughly equal to the in take from the put sale. So there I sit with 93 "free" March 35 call options. Now i bet that almost every one of you would be willing to bet that FGII will, within the next month, have a rally up and over 35 -- even if it is a brief rally. If this occurs sooner rather than later, the options will quickly move to 4-5. I sell at 4 1/2 for total cash in flow of 41,850. This is all profit and the only thing remaining is my open put position. If FGII stays above 30, everything is fine, the options expire worthless. In fact I am profitable or even as long as FGII does not go below 25 1/2 at expiration day close. Even if it ends the month at 29, I get to buy the stock at 30 -- which is where I just sold it and don't mind owning it back -- plus I would have a 3 1/2 point profit to boot. The good news on this trade is that I don't have to put up ANY money to do it. (Of course I do have to be ready to buy 9300 shares of FGII expiration date.) Anyone see any problems I overlooked? I thought about buying the stock at 33 and selling March 35 Calls at 1 1/2. This would give me about $31,000 in profit if FGII closed above 35 or $13,000 if it closed below 35. The problem with this is that I have to wait until the end of the month to realize the maximum profit. I like the idea of exploiting the volatility of FGII and maybe getting in more than one such trade a month. If the stock starts taking a run Monday, I'm not sure what I will do just yet.