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Non-Tech : The Critical Investing Workshop

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To: im a survivor who wrote (10787)4/4/2000 9:08:00 AM
From: Dr. David Gleitman  Read Replies (1) of 35685
 
thanks for the feedback KG4. Another thing to add to this equation is that the options generally dont deteriorate as rapidly as stocks do, not considering the time decay factor (I'm talking about a drop of 10 points for a stock may be reflected by a 4 point drop in the option. This to can be a viable alternative when dealing with a margin call. I just have to work out the math and choose a stock if I can't put off the margin call any longer. Somethimes some healthy and dignified groveling can buy you a day or so, which may be enough to cause a reversal.

Today should be interesting. One one hand some will say that the naz was oversold, msft is said and done (call it a catalyst/excuse) and considering that there is so much new money comming into equities, it should drive the market up. On the othe hand you may find some of the brokerage firms calling their markers which will cause some more selling.

I to am not thrilled with being married to calls for such a long period of time. One thing that may work to our advantage is the October effect. Sell the CC for October. If there is some correction, you may end up whole, or you can keep rolling the calls month to month.

David
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