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Strategies & Market Trends : Option Trades -- Ignore unavailable to you. Want to Upgrade?


To: zx who wrote (1567)4/22/1999 7:35:00 PM
From: Mark Erik Blair  Read Replies (1) | Respond to of 2341
 
Hey ag, yeah selling is always a dilemma.. I almost sold my RNWK options today, but think i will hold on for now cause I have quite a bit of breathing room after their significant rebound from Monday.. I must admit that I got greedy a couple of times in the past and held out too long, but I think most of my current pics have some room for growth yet so I plan to hold for a bit.. Well, at least until tomorrow morning?!..

Good Luck.. Mark



To: zx who wrote (1567)4/23/1999 3:56:00 AM
From: architect*  Read Replies (3) | Respond to of 2341
 
ag,

on RMII i am thinking about this trade,

buying the stock 13 1/4 bid x 13 1/2 ask
selling the May 15 calls 1 bid x 1 1/4
selling the May 12.50 puts 1 3/16 x 1 7/16

reasoning behind the trade

if your stock is called away @ $15 with both premiums you sell your stock at the upper end of the trading range $17,

and if the stock closes below $12.50 you buy more stock around support at $10.25

if the stock closes between $12.50 and $15 you pocket the premiums and keep your stock.

buying COMS Jan 2000 25's here @ 4 1/2,

COMS trading at five year low with takeover rumors circulating around SI.

have bought PAIR Jan 2000 10's below $3 sold @ $4 1/2

will look for this PAIR trade again, just need one day of takeover rumors

also long LPGL.

good luck in your trading, john