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Strategies & Market Trends : Anyone following Capstead (CMO)?? -- Ignore unavailable to you. Want to Upgrade?

To: Dawgfool who wrote (201)	1/8/1999 8:54:00 PM
From: James F. Hopkins	Respond to of 216

Hi Dawg; Glad to hear your calls are looking good, I bought some back last week, March, and put them out to June along with some new stock I picked up. ( wanted them all in one place as it's cheaper on my commissions if I decide to buy them back ) ------------- I have not been a call buyer on CMO, I've been a writer of covered calls, When I saw that pop today I said to myself I had wrote to soon, and maybe I ought to buy them back. But after thinking that trough I doubt I buy them back. Here is my angle, I sold the June 5 calls on stock I had 4-1/4 in and got 1-1/16 for them..so that gives me 6-1/16 on 4-1/4 if they are called , or 1-15/16 , or you might say 45.5% premium on the money I have tied up, plus I get to use or draw interest on the 1-1/16 that went into my account. At any time between I can just buy more stock, if I want and let that what I have get called, that's a wash for me. And my early 4-1/4 stock, is sort of insured down to 3-3/16 before I actully book a loss. The way I'm doing it if you bought my calls you would likey have to exercise or wait to the very last to sell them back to me, as I would only buy them back if the cost was cheaper than the transaction would cost me, and that's not likely. ------------------- It's odd but I find myself happy she went up, and wishing for a dip all at the same time . <G> Jim