|
PureBytes Links
Trading Reference Links
|
Harley,
I didn't wait. Got the puts this morning at an average price of
1.5625. So far so good. Now if I had just closed my DELL, SMOD, and
WLA positions <G>.
Jim
-----Original Message-----
From: Harley Meyer <meyer@xxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Monday, August 31, 1998 9:45 AM
Subject: Re: Weekly Pick
>Hello Jim,
>
>I hope you wait on the puts. I would suspect that we could get a
small rally
>this morning, but I also see that WCOM has fallen a bit too much of
late and
>I can realistically see a rally if not today soon in WCOM. IF you are
dying
>to jump in buy your puts but also by some out of the money calls as
well.
>
>Harley
>
>John Manasco wrote:
>
>> Jim
>>
>> Suffer me for a moment since I'm new at this options stuff. If WCOM
does
>> go to 38 in the next few weeks then yes the Dec 40 put will double,
but
>> the Dec 47.50 will go from 4.250 bid to about 15 to 16 in the same
time
>> frame. And since it has a delta near .45 it has a much better
chance of
>> making money IMHO. Granted your exposure is less with an OTM put
but
>> your chances of making money seem to be less also. That doesn't
mean you
>> won't make a ton, just that it seems to me the probability is less.
>>
>> If you're really up for indigestion how about selling the Sep.
47.50
>> calls for the same premium you're buying the Dec 40 puts?
>>
>> John Manasco
>>
>> Jim Greening wrote:
>> >
>> > I don't intend to hold this position
>> > very long, but also don't want to lose a lot of time value each
day so
>> > I compromised and looked at the December put options. 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. The problems come if we
don't get
>> > the large move <G>.
>> >
>> > Jim
>
>
>
|