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To: Boplicity who wrote (110494)3/21/1999 8:08:00 PM
From: crh02  Read Replies (1) | Respond to of 176387
 
$2.5 Billion gained on option sales? Are these gains cash-real; how are they reported on financials? Any info would be appreciated. Thank you, crh



To: Boplicity who wrote (110494)3/21/1999 8:53:00 PM
From: edamo  Read Replies (2) | Respond to of 176387
 
greg...re"dell making money in options..."

did forbes really state that selling puts are a bet that the stock would decline??????? sounds like michael dell and bill gates are in the same category as pete rose....none of whom ever bet against their own team...un american...perhaps not a good proof reader at forbes!!!

cheers, ed a.



To: Boplicity who wrote (110494)3/21/1999 9:53:00 PM
From: Mohan Marette  Respond to of 176387
 
Japan's 1999 PC Server Market to Grow 19 Pct.: IDC Japan

March 19, 1999 (TOKYO) -- IDC Japan Ltd. projected that Japan's shipments of PC servers will increase 19.4 percent to reach 244,000 units in 1999, outpacing the growth in 1998.

This estimate is based on the signs of recovery in the shipments in the fourth quarter of 1998.

IDC Japan said that substantial latent demand exists for PC servers. It also said that the PC server market will expand due to the introduction of new products featuring up to eight microprocessors and the spread of the Linux operating system.

A total of 204,410 PC servers were shipped in Japan last year, for an increase of 14.9 percent. The growth slowed in 1998 because potential buyers held back on purchases amid the recession......





To: Boplicity who wrote (110494)3/21/1999 10:15:00 PM
From: Bandit19  Read Replies (2) | Respond to of 176387
 
Greg,
Do you think Michael reads Voltaire?
Check this strategy out, courtesy of the AOL thread. Thanks Voltaire...Steve
To: Technician
From: Voltaire

Absolutely, hold on to your shares and do not be scared out of them.

My theory has always been it is not companies that make you rich but numbers of shares in those companies. Although I share your attitude about AOL being extremely strong going forward, you must remember and after looking at your profile, I am sure you do, Newton's famous law, ( for every action, there is an equal and opposite reaction ). The point I am making is that if your scenario played out, AOL would have roughly THIRTY THOUSAND MILLION SHARES outstanding and that is a lot of shares that would require unbelievable volume just to keep the stock price from falling. That being said, it is my belief that AOL will be the most widely held stock in the world within the five year period you speak of. As I stated earlier, it is shares that will make you rich and I find this is the area that most investors fail miserably. I realize most people abhor the use of Margin and if you do then I respect that but I find it to be my greatest weapon along with deep in the money calls in my quest to continue building wealth.
For example tomorrow I will deploy the following strategy because it is time for me to accelerate my strategy on AOL for the run to earnings. DISCLAIMER - I DO NOT SUGGEST ANYONE DO THIS WITHOUT FIRST KNOWING ABOUT CALL WRITING AND THE CONSEQUENCES OF SUCH - this is just an example of increasing your shares and therefore your return. This can be done on a much smaller basis.

I will take 15,000 shares of AOL and write 150 Oct. 2000 6.6 contracts for an estimated premium of $115 per share or a total Premium deposit in my account of $1,725,000. I will then take that amount along with the margin they loan me for approximately five weeks and buy $3,450,000 of AOL at say $120 per and instead of having 15,000 shares working for me I will have approximately 28,750.

A couple of points- One, I do not have to worry about the original 15,000 shares because they will move pretty well in lock step because the calls are pretty well in parity with the price of AOL and therefore my backside is protected.

second - I do not worry about AOL retreating because if it does I will simply write in the money calls all the way down and just keep buying back, writing more calls and keep picking up shares of AOL at cheaper prices. Using this strategy an investor should never be afraid of a Margin Call if he is in a quality stock.

Glad to see your stop is considerably below the market price of the stock. Too many investors keep their stops too close to the price and stand there stupefied as to how they could have possibly been stopped when the price was trading no where near their stop for most of the trading day. GAMES MARKET MAKERS PLAY.

Good luck,

Voltaire

P.S. - Try this with Charles Schwab and you will end up in the LOONEY BIN!





To: Boplicity who wrote (110494)3/22/1999 8:50:00 AM
From: re3  Read Replies (1) | Respond to of 176387
 
why is this derivative nonsense even allowed ?

Howard