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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe)
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To: Randy Schmid who wrote (356)9/22/1997 9:22:00 PM
From: ----------   of 2241
 
Randy:

You bring up an alternative I've used, even successfully a couple
of times. <g>

Once your options are deep in the money, they move with the stock,
BOTH ways. A few years back, I started a little parlay on Micron.
I'd buy calls. They would get deep in the money, and I would sell
them. I would buy farther out higher strike price options with some
of my money.

Pretty much what you are doing with the FEB. 55's. The one thing we
can be certain of.... the market will fluctuate. You are set up to
still participate in a continued upward move of the stock, which is what you anticipate. However, I always remember what Frank Curzio said: "There are no safe stocks when the whole market is going down."

Let your conscience be your guide. It is YOUR money, so it must be YOUR decision. Hopefully your book mentions one saying relevant to
options buyers:"Bulls make money, bears make money, pigs get slaughtered."

Regards,

Doug
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