Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Michael W. Brom who wrote (6487)	5/21/1999 11:01:00 PM
From: SJS	Read Replies (1) \| Respond to of 17183

HI Mike. Lucky for you that it's your IRA. I sold 135 calls for MAY, so they EASILY cleared the expiration date, ha ha!! I only took in 1 1/8 per contract, but it's free money. However June's going to be a tough decision. EMC is down almost 30% and if you sell 105's or 110's you may give your stock away. You might try the 120's, if there is enough premium. I would look at selling calls for the amount of EMC stock you have indicated as one would do if one were in a baseball game - you know, singles and doubles (and bunts) can win you the game. If you get 200-400/month, or more consistently each or at least every other month, you're doing great. Consistency is the issue. Since there is no tax, and small commissions (I hope for your sake), take further out expirations for the $1-2 range, if you can on 200-400 shares. There's less risk of being called. Don't get greedy for the "fat" premiums. You will be called on those. I don't see the full trading range yet for EMC in it's circumstances. I think it should hold 100, and move up after it splits with new money coming in. It's "more" affordable, so to speak. The first few days after the split will be volatile with some guys selling of a portion of their holding to lock gains. After than, I would hope to move up to at least 60-65 by the end of summer, and hold it. Steve