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Technology Stocks : Aware, Inc. - Hot or cold IPO?
AWRE 2.160-1.4%Nov 28 9:30 AM EST

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To: Richard Francis who wrote (2029)9/14/1997 11:03:00 PM
From: Norman Klein   of 9236
 
<<I have a feeling everybody is gonna be selling at 16-17..>>

The trouble with selling at 16-17 is that while everyone else can always get away with it, the one time that you do it, it continues running into the twenties and you miss out on the big movement.

So what I do is sell at the 16-17 price and then buy options to protect my long-term interests. Basically, I am hoping that it drops down and I can increase the size of my holdings. But you have to be willing to lose the price of the options (which is really a good exchange). You could also buy puts (allowing you the right to sell later at a stated price), but I find this to be much more expensive than buying calls.

Also if you are really lucky, you can catch the bounce and still cash in on the options, because it quickly rebounds. Although I generally quickly sell the options to limit my loss.
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