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Siebel Systems, Inc. (SEBL) Message Board

  • smart_investor67 smart_investor67 Jun 17, 2002 2:41 PM Flag

    Investment Advise

    I borrowed about $30K with %0 interest until mid 2003. I am going to put all this money into the stock market. If I buy SEBL shares now and write 1 year covered calls with a strike price of say 20 or 25, I make pretty good money. So basically, even if the SEBL stays in the current price, which is very unlikely (It can easily go to $40-50 in a 12 month timeframe), with the free money I borrowed, I make almost %30-40 profit. I think that's a pretty good return.

    With so much money available to borrow, I can't help thinking that other people will do the same thing and this should take the stocks higher.

    Any comments?

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    • "I borrowed about $30K with %0 interest until mid 2003. I am going to put all this money into the stock market. If I buy SEBL shares now and write 1 year covered calls with a strike price of say 20 or 25, I make pretty good money. So basically, even if the SEBL stays in the current price, which is very unlikely (It can easily go to $40-50 in a 12 month timeframe), with the free money I borrowed, I make almost %30-40 profit. I think that's a pretty good return.

      With so much money available to borrow, I can't help thinking that other people will do the same thing and this should take the stocks higher.

      Any comments?"


      -------------

      For what it's worth, I just bought a couple hundred shares of SEBL today (at 15.27 actually, which turned out to be .03 off the day's low, woohoo) with the intention of holding onto them for a year or more. The stock market hasn't really been on my mind for many months, but seeing SEBL at close to Sep 11 levels had me looking for an entry point. Barring major calamity, it seems like a sure-fire long-term holding at the moment.

      So I think you're right.

    • assuming you purchase 2k of SEBL at 15 and write(sell) 20 January 20's @2.50, you'd make 10k ....less taxes. Minimum return (assuming calls are executed) = 6K or 20%....in 7 months. BUT....IF EXECUTED.
      You could consider buying 20 Jan 20 calls for 5K.....risking 25K less. Do you think SEBL will be above 22.50 by Jan.?...and by how much?

    • Send me the money and I'll GUARANTEE you 200% return. Honest!.

 

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