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too late Jim - hold on - the Calls are getting mighty cheap - ! Plus -
this guy is splitting - that fact compounded
the huge premium built-up in the calls - now it is the PUTS - in a
major way....hm - sooner or later somebody is/gonna asccumalate
you think this is wiild - play the OEX -
bets regards
the other greening
Jim Greening wrote:
> 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
> >
> >
> >
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