Replies to post #283283 on Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

It sure is a value stock here and I sympathize with you, I am in the same boat...

[gtober]

don't write calls here. premiums are squished. wait it out or sell it.

[Joe Stocks]

>>I am way underwater on SSTI and can't decide to sell or to write calls on it.<<

I probably look at things a bit different than others. When I own a stock I try not to think about where it had been. I look at more of what the position represents today.

In this case you can write the Jan05 5's at 1.25. With the current price at 5.37 that gives you downside protection to 4.12 and if taken out at 5.00, a 21% gain for 6 months.

I think SSTI represents a decent value here. However, you and I both know it could go lower in this market. I decided to write calls on it and actually did another buy-write this am.