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.

Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: TEXASA&M who wrote (4766)	3/12/1998 8:16:00 PM
From: Ray Rueb	Read Replies (1) \| Respond to of 7841

RE: rolling up & down with options I'm more familiar with a concept called "money machine". step one: sell a put on a stock you'd want to own. step two: if the stock moves up, put expires worthless, return to step one step three: Buy the stock at the put's strike. step four: Sell a call against the stock. step five: if the stock moves down, call expires worthless, return to step four. step six: if the stock moves up, lose the stock at the call's strike price, return to step one. Note: If a stock continually moves down, then you keep lowering your cost in the stock; if the stock continually moves up, then you keep selling puts and keeping the premiums. If the stock remains the same price, then you keep the time premium in the option sold. This is a very conservative strategy as it really limits your return and your risk.