|
PureBytes Links
Trading Reference Links
|
----------
> From: David Ickes <davidick@xxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Stock splits - options
> Date: Saturday, July 19, 1997 11:29 AM
>
> I've been away for a few weeks and noticed in my old email
messages
> a discussion about Wade Cook. I have read much of what he has written and
> have no particular position about the worth of his "stuff".
>
> As I read his "teachings", his MAIN technique for profit (other
> than selling his publications and seminars) is buying options on a stock
> when they announce a stock split. He buys short term 1 or 2 month 'at the
> money' options and longer term 6 month slighly 'out of the money' optins.
> Much of his WIN network bulletin board is devoted to announcing stocks
that
> have announced a split (Hot off the press type stuff) Even if you miss
the
> initial option purchase immediately after split announcment, he claims
> there are several opportunities along the stock's path where profits can
be
> made.
This is more a phenomena of a bull market (both the number of splits and
the fact that stocks rise afterward) than any proven long term validity to
stocks rising after splits. All stocks have been rising, rather
relentlessly, for several years. In hindsight, one could have done
extremely well using almost any technique in buying a basket of equity
calls.
>
> He claims a very high percentage of winners with this technique.
> I'd love to hear some opinions about this technique from the many option
> experts we have on this list.
Again, the guy is part of the growing herd of bull market geniuses.
>
> Again, I don't care if Wade Cook is a saint or a sinner, does he
> have someting here?
No. As for saint or sinner, I believe Mr. Cook has run afoul of the
authorities and is under indictment. A friend saw an article about this in,
I believe, the NY Times one day last week.
Regards,
Tom Alexander
>
>
|