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

To: Mr. BSL who wrote (49)	1/24/1999 9:12:00 PM
From: pcyhuang	Read Replies (2) \| Respond to of 122

Another variation of a trading model Hi, Duke: Your concern on the upside should not be very serious. Since we are long the three best-performing SPDR funds, which as a whole, should outperform the DIA. Now a variation of my previous model. Buy the XLK @35 and short 2 XLK Jan. '00 50 call options @6. This position would have an upside breakeven at 77, a 220% appreciation of the XLK. Add to this position a half-size short position of DIA, which together with the call premium written will protect the downside to about 11 on the XLK. Again, overall, the position should show a nice profit over time. Rgds, pcyhuang