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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: JZGalt who wrote (6770)	2/5/1999 1:38:00 PM
From: OldAIMGuy	Read Replies (2) \| Respond to of 18928

Hi Dave, I'm attempting to do something I've not done for a while. On JBL I'm looking at their June options and am thinking about selling two $55 PUT contracts. It looks as though the market is willing to pay me over $6/share. That would lower my effective cost to about $49 should I have to take the shares, but nets me about $1100 of cash if it expires worthless. Why just two contracts? Well, AIM would have me buy 200 shares if the price dropped to about $49 or $50, so two contracts would satisfy my buying objectives if they were to fill. If they don't, well, I just have to live with the shares I still have. We don't always have these fat premiums in the options of our stocks, but it's nice to nibble at them when they do occur. I've also sold Calls against my position when I'm flush with cash in a stock and am doing "vealies" anyway. It's like the Dire Straits song "Money for Nothing and Chicks for Free!!" Best regards, Tom