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 : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: James A. Shankland who wrote (10559)	4/30/1998 6:28:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 14631

Thank you, James. Very good analysis I may add, and inline with mine. I accessed the risk, saw the risk to profit in my favour, and went for it. I also had the resistance at about 9 1/2 to 10 working on my side which the price of the stock tends to retest given that the stock has been hovering below that point fo some time now, and another resistance at 11. And yes there is the very large open interest which was definitely a part of my risk analysis. Also I found it hard to believe they would beat the previous quarter's earnings. So if I time it right, I say a worst case scenario of break even or covering at a small cost. Keep in mind that I see CC with respect to my current (losing) position in this stock as more of a defensive strategy and access the risk to profits accordingly. In other words, I need to drop my cost basis on this stock, and the only way to do it is to aggressively write CCs that have for this stock a relatively high premium that can also provide me a buffer as time erodes away this premium. If I believed that the stock would move up without looking back, as you know I would of been more likely to purchase CALLs instead of writing CCs. By the way, your graphing technique is very interesting indeed! I will have to take a close look at this! Bob Graham