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 : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Vol who wrote (208)	7/12/1998 7:32:00 PM
From: Aaron Weiss	Read Replies (1) \| Respond to of 2317

Not intentionally! I was trading BROD since it was at the low end of its historic range and had fat premiums. To me, this stock looked like a great candidate for a naked put write. When I priced it out, though, the calls were selling at even higher premiums than the puts, so I decided to do a covered write instead. It's a stock I would have bought on its price and fundamentals alone. The fact that it became a takeover target was pure dumb luck. In retrospect, I should have forgotten about writing the calls! Generally, I let the arbs play the takeover rumors since, as you astutely point out, they can fall apart at any time without notice! Aaron PS: Like BROD, there are some other SOLID techs at the low ends of their historical ranges. I have my eye on KLAC, SEG, and AMAT. I'm waiting for 25 on KLAC, 20 on SEG, and 28 on AMAT. If they get to these prices, and if the call premiums are sufficiently fat, I'll probably implement either the buy-write or naked put write strategy on them too! I was also looking at SCH at 30-31, but became distracted by too much other stuff; when I looked again they were at 36 and change!