11; and ALL; WARNING ON OPTIONS..BOTH PUTS AND CALLS, and other stuff
First off, Some of the options on CPQ..are effected by the past
split..on the 18th In bought leaps Jan99..unbeknown to me at
the time these things had a 2.5 multiplier built in , while the
price and all looked A OK..each contract I bought..was actually
2.5 contracts ( i didn't know this )..when they funded instead
of 9-5/8 a contract , ( the base price ) it was 24-1/16 a contract
yeeeps...I had actually bought 2.5 times what I had wanted.
This exposed me to a lot of RISK..my account went into margin
and I didn't know about it ! Had this moved against me I could
have been in deep kimshi..and forced to sell things at a
loss, ( like I may have sold my APM before yesterday and likely would have to bring things back into balance )
If you e-trade talk to your broker before you trade in CPQ
options some do this some don't
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As it was I was lucky..and I'd rather be lucky than smart
if I had to chose.
Just the same it shook me up to find out about this a week later,
they were up nicely I dumped them all in my panic..made 2.5 times
more than I would have had I known what I was doing <G>
The real thing and I'm glad I found out was I intended to write
some covered calls 2000 leaps..( out of the money )..but had
they taken I would have had out a lot of naked calls, ( something
I don't do )..( i rarely use any margin..never for leverage i one
of thoes who pays for most every thing with a credit card,
but have never once paid any interest..that sucker is paid
monthly in full and always has been )
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11; I never use stop losses they are a brokers dream, and very
poor cover..you may want to read this..I posted on the APM
thread..but forgot to put in how brokers can pick off
stops..and do when they see enough of them..
After all that's a ready made market for them to short to..
and they do short.
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Message 3836143
republic.net
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