Craig ; and ALL..the price of puts are too high on AOL..and it is
a momentume stock..in part the shorts are the real cause of her rise,
the brokers see the ( buy stops )..and keep taking them out..
by buying just enough to trigger them..then they short to the
shorters..who are being forced to cover..most of the price manipularion, is outside AOLs controal.
Long term she is a dog, but she is a dog that eats shorters !
This thanks to the brokerage houses that can see the ( stop orders )
Another thing shorters need to know..is that if she does fall
you will not get rich..you will be bought in with only a small
profit..as shares are called if she drops very much.
Options let you ride her down, but the premium on the puts has
a lot of down side built into them..they are just to costly.
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You are playing with pros..that can watch the shorts , and fix the
price so this has been a night mare to short. I made a few bucks
early on, but as short interest increased she took it back then
some. My caution would be to the "FEW" individual longs that hold
the stock..( she is held mostly by funds ) when she falls
they will get out before your sell order can exicute ,
( likly before or after the bell )..
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The long term bad news just got worse..with Sprint going into
Radio shack stores nation wide.
I predicted this about 9 months ago , ( on this thread )
it will take a while for that move to impact AOL..but it will.
Now people will have 6,900 RS stores and 25,000 sales man that have
been Sprint certified who they can talk to face to face.
This means 94% of the American population can find a local store RS store nearby to deal with.
The planing has been awsome..
They will offer amoung all the other deals, such as cell phones
beeper service, and special new LD rates, ISP service..with all
new equipment..AOLs hodge podge of a make over out dated
BBS system will not come close to what Sprint will have to offer.
Still the stock, and hype is another story..if you short your
buy stops are being watched..and they know how to trigger them..
I gives them a ready made market..
Jim
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