Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: arthur pritchard who wrote (110471)	3/21/1999 8:41:00 PM
From: edamo	Respond to of 176387

arthur...thanks, for the kind words... i'm glad you are feeling better...hope mark's words on surfing clicked with you... not sure how much i can help...i've focused over the past two years on minimum issues, all with volatility, sometimes together other times contra...i've shed cpq,sunw,csco,lu, no regrets made money, still hold some 40 contracts on cpq 0040's, that i originally got a 14.5 premium for....just closed my sunw puts at 1.875, which i sold for 17.5 you've got to get with a broker/firm that understands the conservative nature of puts...it enhances your call selling...and allows for a see-saw trade in the option without touching the underlying...this gives you the concept of moving in different ways with one stock..not an asset allocation or sector hedge...works up or down, as long as you start off on the right foot...e.g...not bad to sell dell puts...or maybe, only a guess aol calls... my four positions now (largest/smallest) : dell,intc,msft,emc...will probably add to msft, emc positions this week...have some intc 0080 calls that i bought cheap over a year ago...probably will excercise in january and buy the stock... my strategy has been selling puts against cash/margin capacity in a big way when the market acts crazy...10/28/97, 10/8/98,2/17/99...taking the premiums and going long the depressed underlying issue...what it gives to you is an instant pop on the put as the volatility gets to a norm...and builds "inventory" for scalping monthly out of the money call premiums...accumulate about 20-30000 shares of various issues, write 200-300 covered calls at 25 contract, no chance of losing the common, but generate 5-7.5k month with no risk.. market up write safe calls, take premium cover puts, market down sell safe puts, close covered calls...see saw back and forth... no risk, no margin borrowing, not glamorous, only consistent strong profits, which can easily give a triple digit return per annum... you've got good issues, aol, athm, i've never owned, but good on the momentum side(i actually walked away from an offer to but athm @ 31 on a pullback after the ipo...silly me?...just not the type of issue i like, same for aol) let's address your "short deck"...take your time get all the cards back...risk with dealing from a short deck is that you might be missing some aces!!!!! right now, my bet is on dell and emc...one a bit stagnant, the other at an all time high..dell split, emc splitting, franchise names, gorillas... can't understand schwab wanting you to short the common to sell a put...makes no sense...zero sum gain..one up...the other down!!!! not any definitive advise....just moral support, take it slow until you feel steady enough to ride the next wave...i think a big one is beginning to form...good luck to you my friend, ed a. p.s....have you looked at nasdaq 100 trust on the amex...symbol "qqq"...opened last week at 100par...traded range approx 99-106...easy in out, not like a mutual fund...50% weighted in top 10 stocks...