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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: Maven who wrote (3555)	4/3/1999 5:39:00 PM
From: Gary Korn	Read Replies (4) \| Respond to of 6439

Robert, From a post I put on another thread: Message 8668140 Phillip Morris (MO) at 34 9/16, the close on 4/1, is a very tempting buy. The yield is 5% at this level. This also is very close to a double bottom on a 52 week chart (it briefly dipped below 35 in about May 1998). Not a "conservative" play given tobacco litigation risks, but one worthy of note. Rather than buy the stock, I might sell April 35 puts for 1 point, then flip and write May 35 covered calls (now 1 3/4) if it is assigned in 2 weeks. Net/net, assuming assignment, you buy this stock for 35 minus 1 point (the April put) and minus 1 3/4 (the May call), which equals 32 1/4, a terrific entry price. Gary Korn P.S. A covered call is a synthetic naked put. When you sell or write a put, otherwise called a naked put, you take in (rather than pay out) premium, but you will have the stock assigned to you if it drops below the strike price of your put.