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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Ploni who wrote (14513)	10/8/1998 4:34:00 PM
From: Franco Battista	Respond to of 18691

I bought 1000 shares of Dell today and sold Oct 45 calls for 4$ against them. Dell under 45$ is a good buy with this strategy. Their earnings come out next month and if I am not called I will get a big premium for Nov 45 calls. If I am called in Oct, then I make a nice profit. It was the only long play I felt comfortable with today because of the huge call premiums on Dell. The safest short I believe is the SPX. There are no market maker shenanigans on this! It is only a question of time before we test and break the lows again. I sold 5 Nov. 800 naked calls for 168$ when the S+P index was at 951. If there is a rally tomorrow morning I will sell 5 more contracts. It is important to establish a position early and to keep building it up on the rallies, the market is very volatile intraday, the swings are very large as we saw today. My tendency has been to take 20 to 30 point profits on the SPX.