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Non-Tech : STOCK MORONS

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To: HG who wrote (12)	4/5/2001 5:59:56 AM
From: Oral Roberts	of 78

I have done something very similar to that and learned this: If the stock is going the wrong way, sell at market and be rid of it quickly. Do not shut puter off until you have confirmation that you are rid of said pig. I've been bit in both directions trying to save an 1/8th with limit orders that I have gotten to the point that I just buy it or sell it but make it happen quickly. My all time near disaster would be last summer owning puts on RMBS with 100 strike. The bone was down to 92 and looking sickly as the expiration came up. I called the broker and said if I don't sell these what happens since I want to ride it out till the very end. He said I will "sell" these for you at the close on Friday. I said cool and headed on about my business. Wed. of next week I get a letter for a margin call. I call them up to find out what the deal is and find that they "excersised" my options on Friday and I was short many many shares of RMBS. I buy puts on stocks like that because they can go up 15 in 1 day and wipe you out if your short. I was in horror and told him to cover quickly. Worked out because I covered at 78 but Christ what a near nightmare!

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