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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: John Post who wrote (8315)	10/6/1998 10:06:00 PM
From: Dennis J.	Read Replies (2) \| Respond to of 34811

DELL target. Regarding Judy's market savvy, you are right-on. So, let's say she thinks down $10 to about 45 will be the limit. Then you could develop a two-part strategy. 1) Write a Nov 45 covered call that is in-the-money and nets you about $12. 2) As DELL falls, and you approach the target or expiration, buy back the call for say less than 5, and either add some more stock to your holding, or buy some distant calls. Or, if your broker will let you, sell some puts at the next lower strike equal to what you were going to purchase. If Dell goes back up, you pocket the put premium and let it expire. If it goes down further, and you must buy some more DELL, you will buy it at the strike price less the put premium that you already have. Judy might have even better ideas on exactly how to do this. She might even question your judgement in trusting her's so much. If this sounds complicated, practice it with paper trades, and do another one for real next time. As always, this is just my opinion, and I could be wrong. Good luck, Dennis