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Harley,
I don't see any support for another 400 Dow points. Having said
that, watch for the rally tomorrow <G>.
Jim
-----Original Message-----
From: Harley Meyer <meyer@xxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Cc: Alan Kwong <alankwong@xxxxxxxx>
Date: Monday, August 31, 1998 4:01 PM
Subject: Re: Weekly Pick
>I guess I have something to learn if we are in a bear market. Since I
have been
>shorting my normal reactions have been that there is usually a rally
to look for
>after a sharp down turn. But I guess that that was because the bias
was up. I
>almost covered amat on several occasions today but hung n there. The
market will
>be closing soon and after AMAT broke 25 I doubt that I will cover. In
fact I
>will look to add to my position in AMAT. I now have 200 shares. I
will wait
>until tomorrow to-do that. Maybe I can catch a rally back into the
mid 25s.
>
>Harley
>
>Harley Meyer wrote:
>
>> 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
>
>
>
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