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.

Strategies & Market Trends : Z PORTFOLIO -- Ignore unavailable to you. Want to Upgrade?

To: Vic Breck who wrote (1632)	5/3/1998 12:08:00 AM
From: DanZ	Read Replies (1) \| Respond to of 11568

Vic, There is confusion because I personally owned 4500 shares of PAUH (which I sold on Friday) and am short 45 May 12.5 calls. I only did 3000 shares of stock and 30 calls for the Zportfolio. Since Ron asked me if I have to buy back my calls, I presumed he meant the options in my personal account because I didn't sell the stock in the Zportfolio and we aren't in the same predicament. I was referring to my personal account when I said that I would have to come up with 4500 shares of stock if my options are exercised. Sorry for the confusion. Paul, I disagree that options are for day trades only. IMO the same philosophy holds for options as in stocks, ie, daytraders typically trade for 1/8 or 1/4 and exit a position if they get an 1/8 or 1/4 behind. If you are trading options for 1/8 or 1/4, then day trading might be the right strategy. But I don't think covered calls are a day trade strategy. I agree with you that we shouldn't start trading long option positions in the Zportfolio because they are highly speculative. But I think covered calls should be allowed because they are more of a hedging strategy.