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Strategies & Market Trends : Options

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To: Tom K. who wrote (7467)5/5/2000 12:17:00 PM
From: Seldom_Blue  Read Replies (1) of 8096
 
I have seen "rules of the thumbs" on buying the underlying to control risk. The rule says that if the stock begins to run, buy at strike plus premium. That way you are losing money. One has to monitor the stock constantly though. And the yo-yo market we have now does not help either.

If you have cash and are willing to cut your losses (or not making anything), you can do well in this market. Most people do not have the cash to buy the stock, so they have to close the position, hence lock in a loss.

Seldom Blue
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