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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (10730)	5/11/1999 3:35:00 PM
From: Jonathan Thomas	Read Replies (2) \| Respond to of 14162

Tuck, Those June 12.5s are coming down a bit, good for you. I don't know about the fundamentals of the stock, but you pretty much want it hanging around the $12 range. Right now, your calls are ask: 3 5/8. The June 7 1/2 puts are ask: 1/2. I would put an order in to buy 8 of the puts at 3/8 or so, halfway between bid and ask. Nut is now around $10, if the stock jumps, you get called at a 25% gain, if it tanks, you wait until those puts get some value, sell them, keep the stock and the call money. If the stock drops but evens out, like it's coming back, sell those puts at a profit, buy back your calls with the put money, and let it come back for another round. Be careful, this is a volatile stock. I would lock in my gain by buying those puts, even at 1/2 if need be. This thing could drop back, even a 4-5 point pullback would make some decent money on the puts, and you'll sleep at night. my $.02 Ryan