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Technology Stocks : Check Point Software (CHKP) -- Ignore unavailable to you. Want to Upgrade?

To: George Sepetjian who wrote (1857)	3/23/1998 3:56:00 PM
From: ED PLOPA	Read Replies (2) \| Respond to of 7150

George: You're right you never know. When it comes close to expiry you might consider rolling up and out with the objective of reducing cash out of pocket while still holding stock. Then if you get a subsequent downdraft in the stock come back in and buy back the second set of options that you wrote generating at a profit. If the stock goes up more you'll still be gaining to some extent as the premium begins melting away. The net of the first and second set options may be loss but you also need to consider the price of the stock when you closed your first set and the price when you closed your second set because you may have built up that much more equity. Like I said in one of my earlier posts, this strategy works good sometimes. Other times, it will whipsaw you. But on the other hand, it is proven that in writing calls the odds are in your favor. By writing the April 40's at 2 the stock has generated a 7 point profit for you from the time you wrote them. Question on Apr 17 or thereabouts is whether you're going to retain the stock and try it again at a higher exercise price or take your 7 points and move on. Ed Plopa