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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (3495)	6/12/1998 12:01:00 PM
From: Bruce A. Thompson	Read Replies (2) \| Respond to of 4697

Zeev, Please remember that this was an imaginary trade. (Hence the words faux, ersatz, etc) I do plan to take the imaginary $$ I just made and buy a new Imaginary boat with it. Seriously, I have been studying the option markets and plan soon to try some very short term plays in it. I agree with your idea of using covered calls. Here's another imaginary play. Buy 1,000 WFR on margin. Cost $5,017.50 plus comission. Sell 10 June $12.5 contracts @ $.75. Income is $750 less comission. That is already a 15% return on my $5k and it is not yet noon. If I get called before the week after next, there's another $2,500 or a total of 65% return on my $5K in two weeks. If the stock goes down to $8, then the june contracts expire in two weeks and I sell 10 more july $10's @ $.75 bringing in an additional $750 for a two week return of 30% on my $5k. Have I got this right, or am I in la-la land? Bruce