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Technology Stocks : Data Broadcasting Corp. (DBCC) -- Ignore unavailable to you. Want to Upgrade?

To: moby_dick who wrote (2144)	1/6/1999 6:59:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 5102

Just short it into and right after the IPO hit. Look (USAI,MALL,WCAP) everybody going for the new issue. Same story, longs be cautious. C.

To: moby_dick who wrote (2144)	1/7/1999 3:13:00 AM
From: B. A. Marlow	Read Replies (1) \| Respond to of 5102

Interesting options play, moby. Here's a comment. You have a nice potential upside in this play, but for those new to options, let me add some "color commentary:" 1) Writing puts will require and tie up collateral for their duration. (There is no "free lunch.") 2) If DBCC falls below $17.50, the maintenance (collateral) requirement will increase (unless the "short" puts are bought in or offset with "long" puts). In your case, though, the "short" calls will offset this issue to some extent. 3) Normally, the premium income received can earn interest at the broker's money market rate or can be reinvested. You'll add this factor to your potential upside. 4) The upside of this "combo" play is finite (limited). 5) If DBCC rises above $17.50 at expiration, your long position will be called away (unless the "short" calls are bought in). 6) The gain, if any, is taxable at your marginal rate. 7) As this trade is far out in time (6 months+), you'll be sitting with it for many moons. A lot could happen between now and then. (For this reason, many options traders would pass on this play, preferring to run a shorter interval (with covered calls).) Options plays, especially those involving puts, are NOT for inexperienced investors. You can, and will, lose A LOT of money. In my own case, I bought Jan 10 and 12.5 calls (in late Nov) and sold Mar 5 puts (in mid-Oct!)). My stock is staying long. Good luck. Let us know how you did! BAM

To: moby_dick who wrote (2144)	1/7/1999 7:11:00 AM
From: LTK007	Read Replies (1) \| Respond to of 5102

moby dick a major,major warning on the downside of your covered call play---covered calls were the worst mistake I made this year--I got a breakeven when could have had I 200,000 dollar profit! Why,because I had a tanking stock (this is my first serious year of investing-and boy did I learn on this one!)--it was CDNW--so I did the covered call routine(mind you I had 15,000shares and was losing the sweat test,I choked as it were)--well then the stock exploded and all I could do is watch "my profits" sky rocketing --and I got nothing---except the 16k I got for my covered call sale--16k versus 200k,not a good deal. So remember the downside to covered calls can be very painful-- Good Luck,Max90