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Technology Stocks : Xilinx (XLNX) -- Ignore unavailable to you. Want to Upgrade?

To: Scott Violette who wrote (1979)	10/17/1998 1:03:00 PM
From: joe smith	Respond to of 3291

scott, looking into the crystal ball ( that i dont really have) i see the following for the short term. xlnx drops to 36 1/2 37 by tuesday. i dont see it getting as low as 35/36. then a bounce to 39-41 assuming msft earnigns are what analysts are looking for. if xlnx somehow pulls a great qtr out of their butts( not likely) then upside target becomes 43 by next trs. i will cover my relatively small initial short at 37. i will short again at 39 1/2 and a second half at 41-43 should it get there. i will then look to cover half again at 36 and the second half at 33 should we get there. have you ever thought of doing a buy/write with deep in the money calls in an ira account? (reason being you cant short in an ira) i have been thinking about this for a while. i think xlnx is a good candidate for this. here's what ive come up with. you buy the stock long near the bottom of its trading range and hope it doesnt crash form there. lets say you buy at 32 and it rides back up to 40 at which point you sell a 30 call one or two months out for ten bucks. the premium goes into the account. if called you buy on next dip. if not ride it up and repeat. would appreciate your input or thoughts. js