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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Francis Torti who wrote (37710)	3/30/1998 8:43:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

If you write calls you don't have to buy them back; unless they are naked. These are not naked. If the stock does not get called away because it did not get over $30 then you keep the stock and the $500. Unless some nut case calls the stock on you even if it was to be below $30. This has happened, but it is VERY rare. Your risk, then, is that the stock goes even lower. If you are satisfied it shall not....and you do not care if it goes to a hundred (as you say) then the scenario you have described is correct.

To: Joseph Francis Torti who wrote (37710)	3/30/1998 9:07:00 AM
From: donald sew	Respond to of 58727

Hi Joe, You have the correct understanding. You did your homework. Now if by expiration CPQ stays below the strikeprice of $30, then it would simply expire worthless, and no need to execute buy back it back. Seeya

To: Joseph Francis Torti who wrote (37710)	3/30/1998 9:46:00 AM
From: Electric	Read Replies (1) \| Respond to of 58727

Joseph, I will throw in my 2 cents... I have done CC's many times, I think that July calls are way way way too far out there.. go closer. You are limiting your upside potential on CPQ by obligating your shares until July.. I would think that CPQ has much more upward potential than downward movement, but thats only my thoughts on the Co.. writing a CC for 500 dollars is great, but on a 9,000 investment, I would be happy only if that were a 1 or 2 month hold.. thats what I shoot for. I go for 10-15% non margined per month.. Like Judy says I hate to watch paint dry on a wall, why obligate your shares that long? FWIW E the golfer...