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Strategies & Market Trends : Point and Figure Charting

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To: lobster who wrote (975)2/22/1998 9:35:00 AM
From: Jerry Olson   of 34816
 
Morning Lobster

I use In the Money(ITM) options usually with 2-3 months of time, even for a short term trade most of the time...in case you get blindsided, or the trade moves against you for one reason or another..

My rule of thumb is, if a stock can move 10% then I would want my option to double in price...i look for 100% return on my option trades..

If you stick with Big Cap Power stocks say from 75-150 in price, a 10% movement will almost *garuntee* you a winner<GG>..your controling 1000 shares of stock for 4-5-6 bucks, or 4-5-6thousand for 10 contracts, which is my minimum trade...

Hope this helps, Jerry
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