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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Bob Howarth who wrote (12277)	1/23/1999 1:38:00 AM
From: Steve Fancy	Respond to of 22640

Bob, I'd have to double check to swear by it, but I don't believe leaps are offered on any of the babies, TBH, or UBB. I think the babies go out to July at this point. There are still some JAN 2000 TBR options (confusion again, cause these trade either against TBH or an index of the babies) but they will not be opening up any further months and come Jan 2000 TBR options officially disappear. Now, are you referring to selling covered calls? I am assuming so in that you don't need to cover purchased calls, your risk is all up front and limited to the cash you spend. Assuming you're thinking of selling calls against stock you own, potentially great strategy, but unless you're selling against stock just purchased, may make sense to wait for a rally. If you are just now purchasing the stock, doing a buy/write is a great potential strategy...significantly reduces risk, but limits upside. A guy in the last week or so bought TBH around 60 or so and sold covered calls for 10 or so. In doing this, if the stock is above 60 at expiration, the stock gets called away for 60, but he nets 70 cause he took in 10 for the calls. If the stock is under 60 at expiration, he keeps the stock and the cash he took in for the calls and is then free to sell more calls, sell the stock or just sit pat. In effect he bought the stock for 50. Sooo, as long as the stock is above 50 come expiration he's in profit mode. If it sounds confusing, just read this paragraph a couple more times, it's really quite simple. If you have any more questions just let me know. sf