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That 3% factor at work again. Ira.
Bob Fulks wrote:
> At 10:38 AM -0400 5/12/99, Don Roos wrote:
>
> >I hope you all slept through that one (the Rubin resignation news). 30h
> >down in 4m. A good reason to always have a stop in place. If things
> >are going to go wrong, they will at the worst possible time: "due to
> >system problems at the cme" the cubs system went down just before the
> >Rubin selloff. Not nice to have to call in an order while the mkt is
> >going down like a rock. The low in the es was the same as the spoos, so
> >no stop busting. They will have a hay day picking the cherries (stops
> >in place) for awhile after today.
>
> Would stops have helped?
>
> If you were long and your stop got hit, it would have turned into a market
> order to sell. Since there would have been no buyers on the way down, you
> would have been filled at the bottom around 1330 for a $7500 loss per
> contract.
>
> It looks like a good example of where the only protection would have been a
> standing put option.
>
> Comments?
>
> Bob Fulks
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