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.

Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Vincent Chong who wrote (14715)	10/13/1998 9:19:00 AM
From: Glenn D. Rudolph	Respond to of 27307

Worth reading: cbs.marketwatch.com

To: Vincent Chong who wrote (14715)	10/13/1998 10:23:00 AM
From: Chuck Molinary	Read Replies (1) \| Respond to of 27307

Vincent, Excellent analysis. Options are extremely valuable when dealing with a highly volatile stock like YHOO... Chuck

To: Vincent Chong who wrote (14715)	10/13/1998 5:07:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 27307

To answer your question, I think a safer way to play this stock, if you own it or plan to own it, is to sell cover call and use the money to buy some put. The exact strike prices must be chosen wisely. If the stock moves up you can sell the stock buy the call back and wait for it to come back down to sell your put. If it goes down after you buy it, you can cover your call and sell your put. It is easier said than done but it can be done and does minimize one's risk in a volatile stock like this one. If everyone is doing this, I think the volatility of this stock will decrease over time. The premiums for this stock are rich. They are very rich. The wise move is to sell the options not buy them and keep the premium. Buy long shares and write covered calls on a bounce. Sell short at that point and wait for a dip and then write covered puts on your shorts. Repeat each month as necessary. Glenn