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Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (5852)	4/10/1999 3:40:00 AM
From: Andy Riedel	Read Replies (1) \| Respond to of 13953

Another alternative (which I used yesterday) is to sell some calls. The calls also have a huge premium due to the recent runup. I think it can be expected that EGRP will trade lower than it currently is sometime between now and July. I actually think it will trade lower sometime between now and May but that is a slightly more rsiky strategy. Selling the calls limits your total upside but has the advantage of giving you immediate cash on top of your long position. It doesn't however protect you from a steep drop. Andy BTW, I sold some May 80 calls for $20 basically locking in (and limiting) my upside to $100/share. I sold them when EGRP hit $95. With EGRP now at $90, the calls are going for $18. My bet is that EGRP will trade around 80 sometime between now and May 20th sucking the premium of the calls down to about $8-$10.