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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Stefan who wrote (49523)3/2/1999 6:47:00 PM
From: Freedom Fighter  Read Replies (1) | Respond to of 132070
 
Mike, (naked calls)

Do you have any thoughts about selling naked calls on a stock instead of shorting it?

My thought being that in the money naked calls can provide the downside (profit) to the point I would consider closing the short position anyway, but give me some time premium that limits the loss if I am wrong. It also gives me profit if the stock goes sideways or very slightly against me. The only downside to this operation it seems is if the stock blows up real big time or quickly after I enter the position. Then the time/volatility premium may be higher than I received at the new lower stock price. Meaning that exiting would provide less profit than a short position.

Wayne



To: Stefan who wrote (49523)3/3/1999 10:01:00 AM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
Stefan, So far, we are experiencing the morning run of the lemmings. Let's see how the afternoon treats them. AMAT is still acting as though they were going to grow again in the future. Ain't gonna happen, at least not for 2 or 3 years.

MB


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