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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: Dan Duchardt who wrote (10919)	5/28/1999 10:23:00 AM
From: phillip	Respond to of 14162

Dan, Re the PPE straddle, I would not be the Buyer of that straddle. Leave that to the specialist. What I see is a way to lower the cost of the stock to around 9 and be willing to make over 11% on the stock in about 3 weeks if it closes at or above $10 on June 18. And also be willing to double up on your position (at a lower average cost) if it closes below $10. I would take that bet and am considering a similar type straddle for myself.

To: Dan Duchardt who wrote (10919)	5/31/1999 5:54:00 PM
From: Allen Furlan	Respond to of 14162

So watch hph on Tuesday. The June 7 1/2 straddle was 2 on Friday and the stock closed at 7 3/16. Stock less straddle at 5 3/16 plus stock put at 7.5 is average of approx 6.4 on the downside and profit is 7.5 minus 5 3/16 on the upside or 44% for 3 weeks. Problem is that stock technically week and probably will tank in the next 3 weeks. My point is that ROI can often be much better on low priced stocks if premiums are good. Also I would much rather hold hph for a turnaround than some of the high flyers that are popular on this thread.