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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: Doug Meetmer who wrote (4903)	2/24/1999 8:25:00 AM
From: badon518	Respond to of 19700

i have none but others on this thread might.

To: Doug Meetmer who wrote (4903)	2/24/1999 8:37:00 AM
From: Mark Peterson CPA	Read Replies (1) \| Respond to of 19700

I've done it with some success. Bought the stock at 88 and sold the Feb 110's and Feb 135's against the underlying stock. Fortunately, the stock didn't get called away and I resold the March 120's and March 130's against the stock. The volatility of CMGI options provides an enormous amount of premium in the options. IMO, you'd have to be crazy to buy the options, they're so overpriced. Owning the underlying stock and selling out of the money calls has worked for me. But you may feel different about what works for you. What's the risk if the stock get's called if you sell the March 125's? Well, you can do the math on your return for a month. It's a spectacular return. Given the volatility of the stock and the major price swings that accompany it, it appears that even if the stock gets called, there is a possibility that with a little patience, you can buy the stock when it ticks down with the market (somewhere in the 95 to 105 price range) and then sell the calls when (if) the stock rises over 115. JMO Best regards and good luck in your investments, Mark A. Peterson