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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (13378)	7/29/1998 2:03:00 PM
From: dennis michael patterson	Read Replies (3) \| Respond to of 42787

Sonki: on Dell, would you consider selling naked calls? Say August 120s? I am trying to come up with a short strategy, having sold all my Dell. Thanks!

To: Sonki who wrote (13378)	7/29/1998 6:12:00 PM
From: Judy	Read Replies (1) \| Respond to of 42787

Sonki, if you are expecting the market to rally again before the real drop ... I'd sell Sept MSFT 95c into strength rather than buy the puts. Note the puts are priced for MSFT to sink below today's 50-day ema for you to break even. MSFT may experience weakness in Aug and Sept because of the overall market conditions and the DOJ ramping up the case. Product problems and revenue growth slowdown will not be known until the end of Sept, and if so the stock will trade with the jitters. If so, you can uncover then and then decide if you want to buy puts. Why not buy cheap puts as insurance, why the expensive puts?