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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: RavBruce who wrote (28248)	6/26/1998 8:50:00 AM
From: isdsms	Read Replies (1) \| Respond to of 97611

I have not done a study on it, but my feeling has always been, with the desire to hold on to the security and generate income, that 4-5 weeks out of expiry and an out of the money strike price was the best way to take advantage of the holding. When Dell was around 91 two days ago, I asked myself if I would be willing to lose it at $100 in 3.5 weeks (apprx 10% gain) for a $2 return today by writing calls. I did! The best time is when the stock has had a big run, option premium is high and 4-5 weeks out. When you committ to a leap, you're tied up for a long period of time and I believe you limit your ability to make $. I don't see any compelling reason to use them, but what do I know:) Any opinions?