America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Harold S. who wrote (5584)	11/6/1997 9:49:00 PM
From: Investor-ex!	Read Replies (2) of 13594

Spock! (gee, I've always wanted to say that), I'm no expert, but I will contribute what I have learned. It depends on what your risk tolerance is and whether your style is several small gains or a few large winners. If you are making a positional play and can handle a total loss, you can hold the option longer, hoping to get a better price. If you don't want to risk the initial outlay, sell whenever a decent gain materializes. Some traders sell enough of the original position with a limit order to get back the initial capital, and then ride the rest of the "free" options for a (hopefully) better gain. Other traders hold on forever, letting profit after profit slip though their fingers, all the while the time value erodes, ending with a total loss. Don't be one of them! If I may be allowed to mix my metaphors, as a rule of thumb, a bird in the hand of 50-100% is nothing to sneeze at. I'd set a "limit sell to close" in that range and take the money and run.

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