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Jim,
Please help me with understanding the option business. If I want to buy put
options worth 1000 shares, not including commissions, how much would that
cost(i.e. $1625.00, etc). I need this information before I plunge in. FWIW,
I agree that this candidate is ripe for a fall. It came out with one of my
scans as a potential candidate. Thanks again.
Jim
-----Original Message-----
From: Jim Greening <JimGinVA@xxxxxxxxxxxxx>
To: Metastock <metastock@xxxxxxxxxxxxx>
Date: Saturday, August 29, 1998 1:24 PM
Subject: Weekly Pick
Since I'm
>expecting a sharp drop to under 40, I decided on the Out of The Money
>(OTM) Dec 40 Put options ( LDQXH - Bid 1.375, asked 1.625). Going
>this far OTM gives me much greater leverage at increased risk.
>However, the amount at risk for 1000 shares is small compared to the
>amount at risk shorting the same number of shares and the reward for a
>large move is essentially the same.
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