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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: I. N. Vester who wrote (5709)	12/2/1998 12:56:00 AM
From: Pallisard	Read Replies (1) \| Respond to of 27311

I think most people tend to over-complicate option strategies. When options on a volatile stock get pricey, to me, covered calls are the most direct way of keeping the issue, if you think it's fully priced, especially on short term expirations. When I'm still bullish on an issue and don't want to buy immediately for lack of funds or whatever, I sell puts. Consulting charts for pressure points and trend lines is very helpful in determining strike prices. Sometimes straddling the price with puts on both sides and selling 2 of the lower to 1 of the upper can even add more protection to the hedge. At Valence's present stage of price development, however, I think option strategies could be very tricky; it simply hasn't matured yet.