1998 Magic 25 Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 1998 Magic 25

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: CareyM who wrote (60)	12/10/1997 5:47:00 PM
From: Robert Marsh	of 116

Did anyone out there try to take advantage of II's recommendation on these stocks for a short term pop? This past weekend I looked at the new Magic 25 for optionable stocks and low daily volumes. I found about 6 stocks and then calculated the volatility portion of the premium on December in the money calls. By far, the best choice was BTGC. Playing this strategy would require buying the calls and hoping the stock gets a pop when the issue hits the newstand, and before the options expire. Unfortunately, BTGC was one of last year's picks and may not pop as much as new picks. I would also concur with some of the other comments made so far about trading strategy. Don't buy all 25 unless you want to make your broker rich. Put in stop losses at about 20% below your price. With few exceptions (MANU being one), the stocks that fall hard don't get back up. I wouldn't buy repeaters either as I belive only 1 of 5 of last year's repeaters showed a gain. As usual, II used an unrealistic date (11/18) to compare the progress of the 25 to the market. Since they released them electronically on the 5th, that day's opening prices should be used as the basis. Happy investing/trading, Bubba in Milwaukee

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next