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Bill,
I got a good bounce on DELL, SMOD, and WLA today, but think there
is a good chance it was a dead cat type. I'm going to close those
positions in the morning. That will leave me all cash since I took my
put profits this morning.
Jim
-----Original Message-----
From: fletch <fletchmo@xxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Tuesday, September 01, 1998 4:40 AM
Subject: Re: Weekly Pick
>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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