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To: TREND1 who wrote (34455)	6/5/1998 3:52:00 PM
From: JF2155	Respond to of 53903

MU looks like a great short today but MOT gets my short equity - according to future EPS --from 2 bucks to a loss maybe JIM

To: TREND1 who wrote (34455)	6/5/1998 4:09:00 PM
From: S. maltophilia	Respond to of 53903

First, you have to want to own the stock. You actually have to keep it overnight<G>. I did a lot of covered calls on MU in 1996, but then they were actually making money at the time. I won't touch it now. Maybe it would be OK as a naked write.

To: TREND1 who wrote (34455)	6/5/1998 5:22:00 PM
From: Bipin Prasad	Respond to of 53903

Larry, I agree with Khalil about cc on MU due to extreme volatility. Sell naked puts only if you want to own them if it gets exercised. Sell them when you think it's almost @the bottom to keep them. It's a good time to sell 20p, 22.5p, 25p, or sell naked puts during July sell off, then turn around to write cc for sep rally. I keep less than 1/3 in equities these days and the rest cash for options. I write lots of naked puts on ORCL to keep premium every month and to get exercised during certain months. It meets my needs for flexible hours lately. Hall might not like it because option is not as efficient as equity market. Stick with your good old 1/4 if you ask me. Option fees are too high compare to deep discount equity to day trade. Hope it helps, BPP(Bipin's partner)

To: TREND1 who wrote (34455)	6/5/1998 7:28:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 53903

Larry, Writing covered calls on a stock that has bounced freely and rapidly between $17 and $95 over the last 3 years has to be one of the dumbest strategies in the world. Anyone who did it had to have lost tons of money. A $1-$3.50 cannot cover even the mini slide we had in the past month from $32 to $22, much less the bigger moves we have all seen in this bowwow. If you love MU, buy the stock or the calls. At least then the reward for being right is greater than the risk of being wrong. Better strategies if you just want to skim premium include: 1. Do a spread conversion. Buy MU at $25, sell a $25 strike price call, buy a $20 strike price put. You make a decent income and you are protected against the day when the music dies. You can make 10-14% a year doing this sort of thing, especially if you are an active trader. I do this sort of thing all the time in my income account and my partners still can't believe how much money they make with such little volatility. Of course, I also don't use MU on the bull side. I use it in reverse spread conversions, short the stock, short an at the money put, long an out of the money call, collect the interest on the short. But in the mid $20s, I don't use it at all in the income portfolios. Not enough downside play there for my druthers. However, I have often been one of the stats on the short list, and those of us who are covered are one reason those #s are bogus. 2. Do a put credit bull spread. Sell a $25 put and buy a $20 put. I usually do these by holding money market funds for full collateral. Again, we are talking 10-15%. If you don't hold the full collateral, the returns go much higher, but so does the risk. MB