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Strategies & Market Trends : The New SEctor SPDR Funds -- Ignore unavailable to you. Want to Upgrade?

To: Mr. BSL who wrote (36)	1/20/1999 6:43:00 PM
From: mod	Read Replies (2) \| Respond to of 122

I'm looking for comments on this idea. Buy XLK (the tech SPDR) and write covered Jan 50 calls (LJLAJ) against the position. With XLK at 36, the Jan 50 calls are at 6 7/8, which is quite a premium for a call so far out of the money. If XLK moves up to 50+ by next January and the stock is called, your upside is "limited" to about 72%! (including the call premium) I'd be happy with that. (This premium seems so large, I wonder if my quote service is messed up, can someone double check the call price?) OTOH, if the market and XLK sinks, you have about 20% of downside protection. Not enough in a big market sell-off, where the techs have been known to drop 40-50%, but a decent amount of protection. And if XLK goes nowhere for the year, you still make 20% Am I doing the above math correctly? This seems like a pretty good trade to me. Comments?

To: Mr. BSL who wrote (36)	1/21/1999 1:46:00 AM
From: pcyhuang	Respond to of 122

Relative performance of the sector SPDRs Hi, Dick: The following link to a table of relative performance of the various sector SPDRs since Dec.24. A very good profit would have been made if the portfolio consists of long the technology SPDR and short the DIA as I suggested in an earlier message. clearstation.com Rgds, pcyhuang clearstation.com 3 easy steps to access Huang's investment recommendations: 1. Visit the Clearstation site and sign up as its user. 2. Click on the "recommend" button and search for contrbutor "pcyhuang". 3. Click on the "subscribe" button. You will be notified automatically on any change in Huang's recommendations.