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.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: HB who wrote (15548)	4/24/1998 11:16:00 AM
From: Zeev Hed	Read Replies (3) \| Respond to of 18056

I think that buying puts is not as good an insurance as selling covered calls on MRK. If you think the downside risk is large then you sell deep in the money options. Personally, I see MRK earning very close to 4.8 to $5 bucks this year, thus the downside is not much more than another 10 to 15 bucks, if any. The July 110 calls would be good enough protection and I would cover if the stock gets to about 112 (I have 111 as a resistance which if breached, will cause me to reevaluate my position). Zeev