Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: George Cowsar who wrote (61850)	11/2/2000 1:59:39 AM
From: Kevin Podsiadlik	Read Replies (2) of 122087

Sell a call instead of buying a put. If you are sure about your DD... the risk is higher if you are wrong. The catch is, when you sell calls you can also get wiped out even if you are ultimately proven right. Just ask the people who got crushed by AMZN last year. All the DD in the world won't guard against an extended short squeeze (which is what KREM is, make no mistake). Going the "buy puts" route lets you stay in the game regardless of how high KREM spikes between now and then. That is no small consideration. If KREM goes to 250 on its way back to 50, it doesn't matter to the put buyer, but it can be fatal to the call seller. KREM is already trading irrationally, so no price can be discounted as "impossible".

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