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Strategies & Market Trends : Roger's 1998 Short Picks

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To: Roger A. Babb who wrote (79)1/3/1998 7:54:00 AM
From: Michael Berkel  Read Replies (2) of 18691
 
Roger, I've got a real poser for you here. I hope you will regard this a serious question.
Suppose one would be able to invest $10.000 maximum only
in Monday's stockmarket and no possibility to short stocks..which of the folowing 3 investments would make the most sense (or would be the most profitable) in your opinion:
1. 10 put options AMZN July 55. Purchase price: approx. $10.000
2. 10 put options YHOO July 60. Purchase price: approx. $10.000
3. 2000 shares BROC. Purchase price: approx. $10.000

Since I do not live in USA, my broker doesn't allow me to short stocks other than buying & selling put options. As you know, timing and premium are the most common pitfalls for the option buyer and my broker doesn't accept stop orders for options. I already lost quite a bit of money, betting that YHOO and AMZN were fairly valued at much lower prices, indeed in the 30s, where your targets are. Now that valuations are really insane....timing is still complex.

Maybe BROC will do the trick.

I appreciate your opinion.

Michael B.
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