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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (44692)	6/2/1999 5:36:00 PM
From: wlheatmoon	Read Replies (1) \| Respond to of 86076

if the stocks did tank real bad you could buy back the high priced calls for less money, and write another one down lower. John, I think the premium on these inuts will allow one to stay positive in most situation by holding the stock and selling calls, and then doing as you suggested--rebuy and sell if it tanks. Again, the limitation is the upside in an explosive market, but I really don't think the market is in any mood to run up like we have in the last 9 months. I had an edit to the note. Lower risk stocks can also provide pretty darn good returns. A few that I really like-- ABX 17 1/4 now, oct 17.5 calls for 2 3/16---12.6% over 4 1/2 months if it doesn't get called away, 15.5% if it does. FGI 16 15/16 now, nov 17.5 calls for 3--17.7% over 5 1/2 months if it doesn't get called, and 21% if it does. JDEC 18 5/8 now, nov. 17.5 calls for 4 1/4 or nov 20 calls for 3 3/8 will also give one a very nice return. UNPH at 141 now, dec 140 calls for about 27 will give you about 19% over 6 months. The downside on these are limited, perhaps, except for UNPH...-g- BTW--what the heck is wrong with AWRE---very weak. Thought to buy some, but it's not acting nice in the pullback with no bounce. mike PS--Norumbega is like BK, it's a myth. Excerpt-- "In the sixteenth century Norumbega was allegedly a magnificent city on the banks of the Penobscot River. European explorers returned to Europe telling tales of visiting this city where the Indians were adorned with furs, silver and gold. The earliest recorded references to the name "Norumbega" is a quite similar word "Aranbega" which appears on a map drawn by Verrazano in 1524. After Verrazano's mention of the city, many searched in vain, hoping for a glimpse of the sparkling city somewhere on the eastern seaboard. In 1568 the legend gained some credibility from the reports of an Englishman named David Ingram. He was said to have walked from the shores of the Gulf of Mexico up the east coast and through Maine. When he returned to England, he elaborated on Verrazano's "Norumbega", claiming to have seen houses with golden pillars and Indians carrying quarts of pearls. Throughout the seventeenth century, all of New England was referred to on many maps as "Norumbega"...the legend was very difficult to abandon. "