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To: freeus who wrote (15224)	5/6/1999 11:58:00 AM
From: PAL	Read Replies (1) \| Respond to of 41369

OT OT OT Freeus: NITE is of course one of the premier stock for 1999. The time will come that CBOE will issue LEAPS on NITE. Right now, since you already own NITE at a lower price, you can still do sell a strangle for OCT expiration. NITE is at around 150. Sell naked put OCT99/140 (if you want to be safe go for a lower strike price), and sell CC OCT99/150. The premium you get: $ 41 for the put and $ 47 for the call for a total $ 81 premium, Based on today's price: your cost basis is $ 69 and if called you will sell it at $ 150, or 117% appreciation in 5 1/2 months. The downside is that if NITE falls below 140, you get an assignment, and your cost basis would be $ 69 plus $ 140 = $ 209 divided by 2 = $ 104 1/2 per share. Are you willing to take that risk? That's why this strangle is more profitable for LEAPS because you get that hefty premiums. One note of caution: before you sell any naked put, check with yur broker if the stock is marginable and at what rate. Then what is their policy for maintenance requirement. We are dealing with volatile stocks and do not want to get margin calls just because the fluctaution and overextended. Best to you Freeus, Paul