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Strategies & Market Trends : Value Investing

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To: Don Earl who wrote (15501)9/24/2002 8:33:44 AM
From: TimbaBear  Read Replies (1) of 78701
 
Don

Perhaps you and Allen are correct. I have gone with what I thought to be the appropriate risk/reward scenario for this particular situation. I plan to be out of the trade before the end of October, which will leave some time value remaining on the option. I believe if the price drops a few dollars from here and does so within the next couple of weeks, that I'll be able to experience a profit. If, as I suspect, the price drops more than that, well it'll be a better trade still. If I am absolutely incorrect, then I've risked and lost less than $500.

I haven't had time yet to become as proficient in options as Allen appears to be, but hopefully life will be long enough for me to master another area when the need is more pressing to do so.

Right now, my primary areas of focus are in determining the great buy prices in selected issues and in searching for underpriced bonds. This option play was just a "Oh, by the way!" kind of thing. I probably should not have posted it.

Timba
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