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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (21325)	4/22/1999 7:05:00 PM
From: t2	Read Replies (1) \| Respond to of 74651

taxman, with the implied volatility at 60, I decided to sell covered calls at 60, 65, 70 strike prices. In hindsight, I could have just taken the average (65). However, I don't mind taking over some shares if the stock drops from now until expiration. I have almost guaranteed a return for myself unless the stock really takes a dive in which case I would be stuck with the shares after a selloff, if any. Not a bad thing as it is the PC company I like anyways. I think PE is just around 30---have not done the math yet. The risk/return would handily beat money market return by a wide margin. I have not done a detailed analysis to support this but it appears to be common sense to me. BTW-I have gateways shares from before that I have decided not to play around with.