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Strategies & Market Trends : Value Investing

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To: 249443 who wrote (14354)4/21/2002 5:23:02 PM
From: Allen Furlan  Read Replies (1) of 78523
 
mrjc,MCsw, mucho. Thanks for your posts. It would be interesting if some of the value players on this board would share their ideas on value from a hedging point of view. The following post shows how ciena could be two to four bagger over the next 21 months.
Message 17319504
I have found some interesting ideas on the Mr. Pinks picks thread relative to over valued stocks. However I am not comfortable with the idea of shorting stocks, especially when the momentum players are involved in the action. Would like to find stocks that are just plain too high and which have way out of the money options.
Although the idea of selling naked options is considered too risky by the "experts" I will repeat that one can hedge. Also the amount of capital involved is small so if one is careful the positions taken can be over many different issues in different sectors providing diversification.
A comment on puts. They can be sold naked in an IRA if you use either cash or short term treasuries to back up the amount necessary from an assignment.
Good luck to all.
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