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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Shane M who wrote (5750)	1/12/1999 10:29:00 PM
From: Dataminer1	Respond to of 78717

This seems to be one of the most rational threads I have come across lately. Since the topic seems to be value and internet stocks, I wonder if anyone out there is considering what the value of internet stocks would be if Y2K somehow disrupts the public's ability to get on the net. Highly unlikely, It was just an interesting thought. Has anyone seen a guarantee from AOL, MSPG, ELNK, etc. that they will definately be up and running in 353 days or your money back? Naw...couldn't happen Dataminer1 stocksystem.com

To: Shane M who wrote (5750)	1/13/1999 9:54:00 AM
From: Mike 2.0	Read Replies (1) \| Respond to of 78717

Re: I'm trying to learn options currently too - primarily so I can find ways to profit/hedge myself in a down market and make some money when the bubble bursts The simplest way to do that IMO is selling in-the-money covered calls. Example: You own 200 shares of ABC you bought @ 10, now it is 15 but you do not want to sell. Suppose you see June ABC calls, strike price 12 1/2, selling at, say 4 (the option is already in the money by 2 1/2 so of course it will sell for more than that). If you sell 2 of those calls, you keep the $ from the sale of course. If come June (3rd Friday I think?) ABC is trading below 12 1/2 the calls you sold expire worthless and you keep the stock and the proceeds from the calls; you have just hedged your position quite nicely. Your basis in the stock is now only 6 bucks ($10-4)! If it exceeds 12 1/2 your stock will be sold to cover your calls. But in this case it was like selling at 16 1/2 (12 1/2 strike + 4 on selling call)-not bad. IMO the only thing to avoid is ratcheting up your option position to keep your stock if it goes much higher (ie, buy back the calls at a loss and sell another one at a higher price, longer expiration date). Instead, be mentally ready to let the stock go if the calls you sell remain in the money. Hope this helps...