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Non-Tech : The Critical Investing Workshop

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To: SE who wrote (29921)	8/21/2000 11:15:36 AM
From: RocketMan	Read Replies (2) of 35685

Having worked through some examples, and reading a lot of what others have written, it appears that 10%-15% movements in the price of the underlying is a good rule of thumb for when to roll up and out (if the underlying is going up), or buy back and resell (if it is going down). Rolling up and out has no downside, and gives you 1/3 or so of the upside appreciation, but buying back and reselling has the risk of a fast reversal and the stock flying away from you, leaving you stranded with a loss. Not as big of a loss as if you held the common, but a loss nonetheless. Anyone agree/disagree?

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