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.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (15800)	3/21/1998 5:30:00 PM
From: SJS	Respond to of 95453

John, I use some valuation models, trend line analysis and look for reasonable percentage returns if called. We've got to see what the OPEC thing produces before I'd write anything. I always try to write into strength, or at the top of the BB (as Thean uses...). The volatility figures (implied and historical) often dictate how much premium will be in an option, and this helps me select the best month. Usually I sell the next higher strike, but don't always. After a stock run, I might sell the closest in the money (like I did with MDCO just recently). Sure I got called, but I also got quite a bit of premium too. Make sure that you don't sell too deep in the money as the premium evaporates. Selling calls means you want premium rich calls to be in your pocket. I'd rather buy deep in the money calls, like I just did with NE. Now I just became a proud owner of NE..... at 22.5. Open interest and volume don't factor too much until the final week. It might help display telltale signals how and where the stock is going to close.. Regards,